Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, says the proposed 5% fuel surcharge will not take effect until the naira appreciates or global oil prices drop.
Speaking at the Haulage and Logistics Conference in Lagos, he explained that though the surcharge aims to fund road maintenance, introducing it now would worsen hardship. The levy, first introduced under former President Olusegun Obasanjo, was meant to channel part of fuel revenue to road repairs — 40% for federal roads and 60% for state and local roads.
Oyedele noted that while FERMA sought to begin collection after subsidy removal, the committee rejected it, calling it insensitive at this time. The draft tax law, he added, includes safeguards requiring approval from the Minister of Finance before implementation.
“The right time is when the naira strengthens or crude prices fall, so pump prices won’t rise,” he said.
He assured that ongoing tax reforms will ease the burden on the haulage and logistics sector by removing multiple taxes, reducing costs, and simplifying collections.
Under the new policy, transport and logistics businesses with turnover below ₦100 million will be exempt from company income tax, and eligible operators will enjoy VAT refunds and tax incentives.