FG Justifies Fuel Surcharge, Says Money Will Repair Roads

The federal government has defended its planned 5% fuel surcharge, saying the revenue will be strictly used to fix Nigeria’s failing road network.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said on Tuesday that although Nigerians fear the levy could raise prices, poor roads are already driving up transport and food costs.

“I know everybody is concerned about the impact on inflation, I’m concerned myself,” he said. “But Nigeria has about 200,000 kilometres of road, and only about 60,000 are okay. This is the major reason why transporting goods and people is costly and unsafe.”

Oyedele explained that the tax will take effect in January 2026 and will be managed to avoid hurting households. He added that if it fails to achieve its purpose, the National Assembly has the power to scrap it.