Market News

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has assured Nigerians that the proposed 5 percent fuel surcharge will not be implemented until there is a marked improvement in key economic indicators, particularly a stronger naira or lower global crude oil prices.

Speaking at the Haulage and Logistics Magazine Conference & Exhibition in Lagos on Thursday, Oyedele explained that although the fuel surcharge is a well-conceived policy aimed at funding road maintenance, implementing it under current economic conditions would only increase hardship for Nigerians.

He noted that the surcharge, originally introduced during former President Olusegun Obasanjo’s administration, was designed to channel part of fuel revenues into road repairs, with 40 percent allocated for federal roads and 60 percent for state and local government roads.

“The idea is brilliant and already being implemented in more than 150 countries,” Oyedele said, pointing out that most of Nigeria’s 200,000 kilometres of roads are in poor condition.

He revealed that while the Federal Roads Maintenance Agency (FERMA) had sought approval to begin collecting the levy following the removal of fuel subsidy, the committee opposed the proposal.

“We said no, introducing such a tax now would be insensitive,” Oyedele stated.

He explained that although the surcharge remains in the draft tax legislation, it cannot be activated without an official order from the Minister of Finance.

“For me, the right time will be when the naira strengthens or crude prices drop, so the surcharge won’t raise pump prices,” he added.

Oyedele also disclosed that the ongoing tax reform agenda is designed to ease the financial burden on the haulage and logistics industry by eliminating multiple taxation, reducing operational costs, and enhancing efficiency.

“We are not introducing new taxes; we are removing the many duplicated ones that frustrate transporters and increase prices,” he said.

He further explained that under the new framework, small transport and logistics companies with an annual turnover below N100 million will be exempted from company income tax, while qualified operators will enjoy VAT refunds and tax incentives.

Oyedele emphasised that the reforms aim to simplify Nigeria’s complex tax system, improve transparency, and ensure that revenues are efficiently distributed across federal, state, and local governments, paving the way for a more sustainable fiscal structure.