Fuel Tax Won’t Begin Until Naira Appreciates, Oil Price Falls — Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says the proposed 5% fuel surcharge (fuel tax) will not be implemented until economic conditions improve — specifically when the naira appreciates or global crude prices fall. 

Speaking at the Haulage and Logistics Magazine Conference & Exhibition in Lagos, Oyedele emphasized that while the surcharge is a valid policy to fund road maintenance, implementing it now would further strain Nigerians already facing economic hardship. 

He clarified that although the surcharge is included in the draft tax law, its actual commencement must await a formal order from the Minister of Finance, after meeting predetermined safeguards. 

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

In an earlier interview with Daily Trust, he had similarly argued the government can time the implementation so that pump prices stay constant. 

Why This Matters & What to Watch

• The fuel surcharge has generated significant controversy. It was first introduced under the Olusegun Obasanjo administration and designed to earmark 40% of proceeds for federal roads and 60% for states and local governments. 

• Critics worry that implementing it under current inflationary pressures would worsen the burden on citizens. Oyedele’s stance seems intended to avoid that political backlash.

• Observers will watch whether the naira does appreciate meaningfully or global crude prices drop — two conditions Oyedele deems necessary — before the tax is rolled out.

• Also important is whether the government stays faithful to the promise that the tax, once implemented, will not lead to an increase in pump prices.

👉 For further policy commentary, updates on when the surcharge might finally take off, and how it affects transport & logistics, read the full article on my blog