- The federal government announced it will not immediately implement the 5% oil product tax contained in the new legislation.
- Finance Minister Wale Edun revealed this in Abuja after a nationwide threat of industrial action against and organized labor.
The federal government clarified that it does not immediately plan to enforce a 5% tax on petroleum products in the new tax law.
Finance Minister and Economic Coordination Minister Wale Edun revealed this at a press conference in Abuja on Tuesday.
His statement came in amid a wide public outcry for organized labor and threats from industrial action, which calls for tax cancellation.
Meanwhile, Gistlover reported that Taiwan Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reform, clarified that the controversial 5% fuel surcharge was not raised by President Bola Tinubu’s administration, but has been around since 2007.
Speaking in the Morning Post on Channel TV on Tuesday, September 9, Oyedele said the law has been dormant due to fuel subsidies.
“A very important message that people know is that the government did not introduce such surcharge. It was introduced in 2007. Then, it was not implemented because the government is subsidizing fuel,” He said.
Recent reports suggest that the surcharge will take effect in January, which will take effect in January, sparking strong public outcry as the cost of living rises. However, Oyedel insists that the measure is not part of the tax reform bill signed as the law earlier this year.
“When we were doing tax reform, it wasn’t even in the original proposal, so that’s not to say the president made a recommendation to the National Assembly. But in the process of dealing with the bill, these issues arose and then decided that we shouldn’t let different agencies collect taxes,” He explained.
According to him, the law grants the Federal Road Maintenance Agency (FERMA) the task of managing surcharges, where 40% of revenue is allocated to federal roads and 60% is allocated to states. He stressed that it has not yet been confirmed that implementation will begin in January, which is contrary to speculation.
Since then, the debate has sparked boycotts from civil society organizations, trade unions and organized private sectors. The Trade Union Congress (TUC) threatens to implement surcharges and will strike.
However, Oyedele defended the policy, highlighting its importance to road infrastructure. He believes: “The surcharge is necessary for maintenance of Nigeria’s road network, saying that these benefits will ultimately serve the public.”
