Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has assured that the proposed 5 percent fuel surcharge will not be implemented until key economic indicators show significant improvement — particularly an appreciation of the naira or a decline in global crude oil prices.
Speaking at the Haulage and Logistics Magazine Conference & Exhibition in Lagos on Thursday, Oyedele said that while the surcharge is a sound policy aimed at funding road maintenance, introducing it now would deepen the financial hardship faced by Nigerians.
According to him, the policy — first introduced under former President Olusegun Obasanjo — was designed to dedicate part of fuel revenues to road repairs, with 40 percent allocated to federal roads and 60 percent to state and local government roads.
“The idea is brilliant and already being implemented in over 150 countries,” Oyedele noted, adding that most of Nigeria’s 200,000 kilometres of roads remain in poor condition.
He revealed that the Federal Roads Maintenance Agency (FERMA) had sought to begin collecting the levy following the removal of fuel subsidy, but the committee rejected the proposal.
“We said no — introducing such a tax now would be insensitive,” he stated.
Oyedele explained that while the surcharge is included in the draft tax legislation, it carries safeguards requiring the Minister of Finance to issue an official order before it can take effect.
“For me, the right time will be when the naira strengthens or crude oil prices drop, so the surcharge won’t push pump prices higher,” he added.
The committee chairman further assured stakeholders that the ongoing tax reforms would bring significant relief to the haulage and logistics industry by eliminating multiple taxation, cutting operational costs, and improving efficiency.
“We are not introducing new taxes; we are removing the many duplicated ones that frustrate transporters and increase prices,” Oyedele said.
He disclosed that under the new tax framework, transport and logistics businesses with an annual turnover below ₦100 million would be exempted from company income tax. Eligible operators, he added, will also benefit from VAT refunds and other tax incentives.
Oyedele emphasized that the broader goal of the reforms is to simplify Nigeria’s complex tax structure and ensure that all collections are transparent, efficient, and equitably distributed across the federal, state, and local government levels.
