The Federal Government will delay the introduction of fuel taxes until the economy stabilises and Nigerians’ incomes improve enough to absorb the additional costs, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said.
Oyedele said the government would first complete its ongoing economic reforms, restore economic growth and improve household incomes before introducing the proposed taxes.
He spoke in an interview with ARISE News on the sidelines of the 2026 International Monetary Fund and World Bank Annual Meetings in Bangkok, Thailand.
The minister said introducing additional taxes immediately after the removal of the petrol subsidy would place an excessive burden on Nigerians already grappling with rising living costs.
“You remove subsidy, you can’t immediately impose taxes. That would be insensitive. You push the people to the wall,” he said.
Oyedele noted that fuel taxes were common in many countries, including several African nations that impose multiple levies on petroleum products.
He said taxes account for between 20 and 80 per cent of fuel prices in some countries, while several African nations impose between six and 10 different taxes on petroleum products.
However, he maintained that Nigeria must first strengthen its economy and ensure that citizens earn enough to cope with any additional charges.
According to him, economic policy should focus on increasing incomes faster than prices rise rather than attempting to keep prices artificially low.
“The objective should be that whatever, instead of trying to suppress prices, which hasn’t worked for us, it hasn’t worked for any country in the world, but not one, instead of trying to suppress prices, think about how to grow income faster than prices rise,” he said.
The minister added that the proposed taxes would be dedicated to infrastructure development, particularly road construction, and the establishment of fuel reserves to help cushion the effects of future disruptions in the petroleum market.
He explained that the reserves could help the government moderate fuel prices during supply shocks, while the tax mechanism could also allow temporary reductions or waivers when necessary.
Oyedele said several countries had reduced fuel taxes during periods of market disruption to ease pressure on consumers, adding that Nigeria could not deploy the same measure because it had no such taxes in place.
He also assured Nigerians that the government would not introduce the taxes secretly, noting that the law required the relevant order to be published in the Federal Government Gazette before implementation.
He said the government intended to explain the reasons for the policy and its expected benefits to Nigerians before introducing it.
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