NIGERIA: Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has denied plans by the Federal Government to introduce a fuel tax when the economy stabilises and Nigerians’ incomes improve, despite remarks he made during a televised interview suggesting that such taxes could be introduced at an appropriate time.
Oyedele, in a post on X on Tuesday, described reports that the government would introduce the levy after economic conditions improve as “fake news”, insisting that a fuel tax was not being considered.
However, during an interview with ARISE News Business Correspondent, Rotus Odiri, on the sidelines of the 2026 annual meetings of the International Monetary Fund and the World Bank in Bangkok, Thailand, the minister said fuel taxes could be introduced when economic conditions and income levels made them affordable for Nigerians.
Explaining his position during the interview, Oyedele noted that taxes account for between 20 and 80 per cent of pump prices in some countries, while several African countries impose between six and 10 different taxes on fuel products.
He argued that introducing a fuel tax while petrol was still subsidised would have been counterproductive because the government would effectively be paying the tax itself.
He also said imposing the levy immediately after the removal of the petrol subsidy would have been insensitive to Nigerians already grappling with higher fuel prices and the rising cost of living.
“The objective should be that instead of trying to suppress prices, which hasn’t worked for us, it hasn’t worked for any country in the world, not one. Instead of trying to suppress prices, think about how to grow income faster than prices rise,” Oyedele said.
“That’s how you bring prosperity and grow the middle class and that is exactly what we are doing as led by Mr President himself.
“At the appropriate time, when the economy has stabilised and income level will be able to accommodate it, those taxes will come. Not because we want to impose taxes,” he added.
In his subsequent post on Tuesday, however, the minister reiterated that introducing a fuel tax at this time would be insensitive, given the economic consequences of petrol subsidy removal.
He dismissed reports suggesting that the government intended to introduce the levy once the economy stabilised, insisting that a fuel tax was not on the table.
The apparent contradiction between his televised remarks and subsequent denial has drawn attention to the government’s position on fuel taxation and whether the prospect of additional levies on petroleum products remains a consideration for the future.
For Nigerians facing high petrol prices and persistent pressure on household incomes, the distinction between a tax being ruled out for now and one that could be introduced under improved economic conditions remains significant.
