Government reveals plan to introduce fuel tax

Wednesday, October 21, 2026 -The Federal Government has revealed plans to introduce a fuel tax. 

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during an interview on the sidelines of the 2026 International Monetary Fund and World Bank annual meetings in Bangkok, Thailand. 

He said the tax would be introduced when the economy stabilises and the incomes of Nigerians improve sufficiently to accommodate the additional cost. 

According to Oyedele, revenue from the tax would support road infrastructure and the development of a fuel reserve to cushion future price shock. 

Oyedele said introducing the tax while petrol was subsidised would have been counterproductive because the government would effectively have paid the charge itself. He added that imposing it immediately after subsidy removal would have placed additional pressure on Nigerians. 

Oyedele said: “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. 

“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.”