The Federal Government has indicated that it will introduce fuel taxes when economic conditions improve and Nigerians’ incomes can accommodate the additional financial burden.

 

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during an interview with ARISE News on the sidelines of the 2026 IMF and World Bank Annual Meetings in Bangkok, Thailand.

 

Oyedele explained that the government would prioritise consolidating its economic reforms, restoring economic growth and improving household incomes before introducing additional taxes on petroleum products.

 

Although the minister did not give a specific date for the implementation of the proposed fuel taxes, the development is expected to attract public attention amid concerns over the rising cost of living following the removal of the petrol subsidy.

 

According to him, introducing additional levies immediately after the subsidy removal would have further increased the hardship faced by Nigerians.

 

“You remove subsidy, you can’t immediately impose taxes. That would be insensitive. You push the people to the wall,” he said.

 

The minister noted that fuel taxes account for between 20 and 80 per cent of petroleum prices in some countries, adding that several African nations also impose multiple levies on fuel products.

 

He maintained that the proposed taxes would be designed to generate revenue for critical infrastructure, particularly road construction and the development of strategic fuel reserves.

 

“Not because we want to impose taxes, it will be because those amounts of taxes will be dedicated into road infrastructure, they’ll be dedicated into building our fuel reserve, that can help us moderate prices of fuel products, if anything happens,” Oyedele explained.

 

He added that establishing fuel reserves could help Nigeria manage future disruptions in petroleum supply and moderate price fluctuations.

 

Oyedele also said the proposed framework could allow the government to temporarily reduce or suspend the levies when international market shocks or other economic challenges make such intervention necessary.

 

He cited the experience of more than 50 countries that reduced fuel taxes to cushion the effects of market disruptions, noting that Nigeria lacked comparable levies that could be reduced during periods of economic pressure.

 

“This is what more than 50 countries around the world, they were reducing the taxes, but we had no taxes, there was nothing to reduce,” he said.

 

The minister further stressed that the implementation of the proposed taxes would follow due process and would not be carried out secretly.

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“There has to be an order published in the gazette by the finance minister, which means we can’t do it in secret,” he added.

 

Oyedele maintained that the government would only proceed when economic conditions had improved sufficiently and citizens could better understand the rationale behind the policy and its anticipated benefits.

 

Taxes Nigerians May Face

Separately, a list circulating alongside reports of the proposed fuel tax has outlined several taxes and levies that Nigerians and businesses may be required to pay. The list includes:

 

1. Personal Income Tax (PIT)

2. Pay-As-You-Earn (PAYE)

3. Value Added Tax (VAT)

4. Companies Income Tax (CIT)

5. Development Levy

6. Capital Gains Tax (CGT)

7. Withholding Tax (WHT)

8. Stamp Duties

9. Tax on Rental Income

10. Tax on Investment Income

11. Presumptive Tax

12. Global Minimum Tax

13. Property and State Taxes/Levies

14. Customs and Import Duties

15. A proposed five per cent fuel surcharge

 

However, the list should not be interpreted as confirmation that all the taxes will be newly introduced after the 2027 elections. Several of the taxes already exist under Nigeria’s tax system, while the timing and implementation of any proposed fuel surcharge would require further clarification from the relevant authorities.

 

Oyedele’s remarks indicate that the government intends to consider additional fuel-related taxation only when economic conditions and household incomes can better accommodate the impact.