I challenge anyone to give me an example of a new tax this administration has introduced. There is none.
In this interview with Trust Television (TRUST TV) Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, explains how his committee intends to implement the new tax laws recently signed by President Bola Ahmed Tinubu, which are expected to take effect in January 2026. He also defended the five per cent fuel surcharge currently generating public backlash, insisting it is not a new tax but an existing law that has been dormant since 2007.
Nigerians are angry about the five per cent fuel surcharge. Is this a new tax?
This is not a new tax. It was first introduced into law in 2007, and the intention was to collect that five per cent and use it to fix roads. But it was not implemented because the government was paying subsidy. The law has always been there.
The proceeds are to be shared between the federal and state governments, 40 per cent to the centre and 60 per cent to the states.
But why introduce it now, with the hardship in the country?
The real problem is not the surcharge itself but the terrible state of our road network. The reason moving goods around in Nigeria and travelling is a nightmare is because the roads are bad.This was meant to be a way of addressing that problem.
Globally, including in many African countries, between 20 and 80 per cent of the pump price of petrol goes into charges and levies used to repair and maintain roads. Ours is even lower.
Nigerians say they don’t trust the government to use the funds well.
That is a legitimate concern. The reason people are angry is because they do not trust the government.
The solution is to create a governance structure that ensures transparency and accountability.
Let’s publish how much you’ve collected and the road you are fixing. Put videos, put photos, and let us track it together. That is how we can build trust.
When exactly will this surcharge commence?
The law requires a commencement date to be announced and gazetted by the Minister of Finance before it can take effect. So, it cannot just be implemented arbitrarily.
The government can even time it so that pump prices do not rise. For example, when the naira appreciates or crude oil prices fall, if you add the surcharge then, the price remains the same. That is the sensible way to go.
Critics say this government is piling new taxes on Nigerians.
That is not correct. One of the first executive orders President Tinubu signed suspended four taxes. So, it is unfair when people accuse this government of introducing new ones.
I challenge anyone to give me an example of a new tax this administration has introduced. There is none.
Labour unions have threatened a strike over this.
I was disappointed with TUC and NLC. Some months ago, they even called for the entire tax reform bill to be withdrawn.
That was shocking, because this bill clearly benefits workers.
If they don’t like a provision of the law, the proper way is to sponsor an amendment in the National Assembly. It is not by strike. We need to respect processes.
(Culled from Daily Trust)