5% fuel surcharge was introduced in 2007 and not by Tinubu’s government — Chairman of tax reform committee, Taiwo Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the controversial 5% surcharge on fuel was not introduced by President Bola Tinubu’s administration but has been in existence since 2007.

Oyedele made the disclosure on Tuesday, September 9, during an interview on Channels Television’s The Morning Brief, explaining that the law had remained dormant because fuel was being subsidised.

“One very important message for people to know is that this surcharge was not introduced by this government. It was introduced in 2007. And then it was not implemented because the government was subsidising fuel,” he said.

Recent reports suggested that the surcharge, which places a 5% fee on every litre of fuel purchased, would take effect in January. The development triggered backlash from Nigerians, with critics faulting the timing amid rising living costs. Oyedele, however, insisted the measure was not part of the original tax reform bills signed into law earlier this year.

“While we were doing this tax reform, it was not even in the original proposal, so it was not like the President proposed it to the National Assembly. But in the process of working on the bills, these issues came up, and then the decision was made that we should not have different agencies collecting taxes,” he said.

According to him, the law mandates the Federal Road Maintenance Agency (FERMA) to administer the surcharge, with 40% of the revenue going to federal roads and 60% to states. He added that there is currently no indication that the surcharge will begin in January, contrary to speculations.

The debate has sparked opposition from civil society organisations, trade unions, and the Organised Private Sector. The Trade Union Congress (TUC) has even threatened to embark on strike action if the surcharge is enforced.

Oyedele, however, argued that the surcharge is necessary for the upkeep of Nigeria’s road network, saying the benefits will ultimately serve the public.

Share on:  Whatsapp  Twitter  Facebook