The Federal Government has announced plans to introduce a new fuel tax on petroleum products, but assured citizens that the policy will only take effect once the national economy stabilises and citizens’ income levels improve sufficiently.
​Speaking on Monday, October 19, 2026, at an economic stakeholder briefing in Abuja, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, explained that imposing immediate tax burdens following the removal of fuel subsidies would place an unfair strain on households.
​Addressing reporters and policy experts at 2:30 PM at the Ministry of Finance headquarters, Oyedele emphasized that the government is acutely aware of the economic pressure currently facing Nigerians.
​”You remove subsidy; you can’t immediately impose taxes. That would be insensitive. You push the people to the wall,” Oyedele stated. “The federal government will introduce a tax on fuel only when the economy has stabilised and Nigerians’ incomes can absorb it.”
​He noted that fuel taxes are a global practice used to fund infrastructure and maintain public services, with many nations placing levies of 20% to 80% on fuel products. However, he reiterated that Nigeria’s implementation schedule remains strictly tied to real income growth and broader macroeconomic recovery.
The primary metric for introducing the fuel tax will be an increase in household purchasing power rather than rigid timeline dates. Revenue generated from the eventual tax will be ring-fenced to fund road maintenance and support energy security initiatives.
The policy framework includes dynamic adjustments to suspend or reduce levies during global petroleum price shocks to cushion consumers.
​The committee reaffirmed that price-suppression mechanisms are unsustainable long-term and that the government’s focus remains on accelerating income growth across both public and private sectors before enacting additional petroleum levies.
