Mixed reactions trail 5% fuel tax as Lagosians weigh in

By Sandra Simon

The proposed 5% fossil fuel tax on petrol and diesel is generating reactions among Nigerians, many of whom have expressed anger over the development.

According to the federal government, the tax, which will be enforced from January 2026, has only been reinstated in the new tax act for harmonisation and transparency.

Social media has been abuzz with the issue as netizens continue to debate the pros and cons of what appears to be one of the government’s most controversial announcements in recent times.

Meanwhile, those residing in Lagos State are not left out of the ongoing conversation.

Not everyone can afford to pay 5% tax – Lagos resident

Lagos residents are sharing their two cents on the subject, with Mrs Ladi, who lives in Ikotun, revealing her distress.

“The issue of taxing individuals 5 per cent for purchasing fuel is wrong. The current situation we are in, not everyone can afford that, and including this would be a real struggle,” she said.

‘Filling stations should be monitored to ensure transparency’

Another Lagos resident who is based in Apapa, identified as Jeremiah, noted, “If they are going to be introducing this new law on buyers, then the government should make sure that those selling it ensure the fuel pumps are fixed accurately.

“One litre should be one litre, so that the charges of the percentage will not affect the buyers massively.

“Many times we buy fuel, and it turns out that the litre we intend to purchase was not sold to us that way.

“The government should therefore introduce a committee or enforcement to ensure that every filling station is being monitored to ensure transparency.”

Commuters kick against tax law, cite reasons

Some commuters who travel daily shared their plight as well.

Andrew Olive from Idimu shared, “I transport daily, and I can only imagine the cost of transportation once this law is implemented.

“The tax will affect people like us massively, especially those of us who have budgets and families to run.”

Diving deeper, an okada rider who preferred anonymity had this to say, “Does the government think we are like them that pluck money from the tree?

“The normal payment of fuel is enough to drain our pockets; must they still go ahead to make things difficult for us? With time, we might even be taxed to drink water.”

Fuel attendants express reservations

A fuel attendant at a popular filling station also shared her take on the matter.

“I don’t really know how they plan to go about this because our own is to follow the government directives and instructions, although the people are already complaining about the prices, so implementing this would attract more complaints.

“But there is nothing one can do since we, the masses, have no choice.”

Another attendant stated, “At the end of it all, what we want is a country that has better living conditions. If there would be tax for everything, let us at least see where the money is going.”

5% fuel tax for harmonisation, transparency – FG

While speaking with journalists on Tuesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, clarified that the 5 per cent surcharge was not a new levy, but rather a provision first introduced in 2007 under the Federal Road Maintenance Agency Act.

According to him, the law, which has been in existence since 2007, is meant for harmonisation and transparency.

“The inclusion of the surcharge in the 2025 Nigeria Tax Administration Act does not mean an automatic introduction of a new tax. It doesn’t mean fresh taxation automatically.

“The 5 per cent surcharge has existed since 2007. Its inclusion in the new law is merely for harmonisation and transparency.

“There is no immediate plan to implement any surcharge, and as of today, no commencement order has been issued or is being prepared,” he said.