As Nigerians continue to struggle with rising prices, economic instability, and widespread hardship, the upcoming 5% surcharge on both locally produced and imported petrol and diesel—set to take effect on January 1, 2026—appears not only ill-timed but also fundamentally unjust.
Since President Bola Tinubu abolished the petrol subsidy on May 29, 2023, alongside the subsequent devaluation of the naira, ordinary citizens have been grappling with relentless inflation. The costs of food and transportation have surged, affecting everything from medical bills and school fees to telecom services and electricity rates.
For a population already stretched to its limits, any further hike in petroleum product prices feels like adding insult to injury. Petrol prices have quintupled since May 2023, with the naira losing over 60% of its value against the US dollar during this period. As of July 31, petrol prices averaged N900 per litre nationwide, compared to N187 before Tinubu took office.
The new surcharge will further devastate household budgets already strained by high fuel costs that influence the prices of essential goods and services. Many stakeholders—including fuel marketers, drivers, farmers, and human rights advocates—have raised alarms that this new tax will lead to even higher transport and commodity costs, worsening the daily struggles of millions.
The government argues that the surcharge will enhance non-oil revenue and promote fiscal sustainability, but this rationale seems hollow given the severe impact on families and small businesses. The Tinubu administration’s focus on revenue generation appears indifferent to the plight of ordinary citizens, bordering on cruelty.
While the government claims to have saved about $600 million monthly and increased state allocations by 40% annually since removing the subsidy, the question remains: why impose further taxes on Nigerians? This contradicts the intent of tax reforms aimed at reducing multiple taxation.
Although the government projects a N796 billion windfall from this surcharge, it comes at a time when consumers are already struggling with high inflation, food insecurity, and rising transport costs. The justification for these taxes undermines the recent efforts to broaden compliance and expand the tax base.
Imposing an additional tax on essential transport fuel lacks both moral and practical justification. For an administration that promotes “renewed hope,” this insensitive tax feels like a betrayal of that promise.
As Akintade Abiodun, National Chairman of the Joint Drivers Welfare Association, aptly notes, the government is treating Nigerians as “lab rats” for unpopular economic policies.
If the administration seeks to increase revenue from the oil sector, it should prioritize accountability, enforce fiscal discipline, and address systemic leakages within the NNPC. Enhancing oil production, divesting from bankrupt refineries, and investing in gas processing facilities and pipelines should take precedence over burdening the public with additional taxes.
Recommendations for digital tracking, transparent pricing, and robust oversight in the oil downstream sector should not be overlooked in favor of taxing citizens further.
Imposing this new tax amid multiple economic shocks indicates a leadership disconnected from the realities faced by the populace. Revenue generation should not come at the cost of social justice; fiscal reforms must uplift, not further impoverish, the citizens the government is meant to serve.
This petrol tax should be postponed until the economy and its people have truly recovered. To do otherwise is not only poor policy but also profoundly unfair.
