The announcement of a 5% fuel tax under Nigeria’s new Tax Administration Act 2025 has sparked concern across the country. While the government insists there’s no immediate plan to enforce it, many Nigerians are still uneasy, and for good reason.
The tax itself isn’t new. It’s been part of the law since 2007 under the FERMA Act, meant to fund road repairs. What’s changed is that it’s now included in a broader tax reform. Officials say it won’t take effect until January 2026, and only after a formal order is issued.
But the real issue isn’t just the tax; it’s the timing. Fuel prices are already high. Inflation is squeezing families. And with fuel subsidies gone, even the idea of paying more feels like too much. People aren’t just asking “how much?” They’re asking, “why now?”
Government officials say the funds will be “ring-fenced,” meaning they’ll be used only for road maintenance. That sounds good on paper. But Nigerians have seen promises before. What they want now is proof. Clear plans, visible results, and real accountability.
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There’s also the question of trust. Can this tax actually lead to better roads and lower transport costs? Or will it become another burden with no benefit?
For now, there’s no extra charge at the fuel pumps. But the conversation has begun. And it’s not just about fuel, it’s about fairness, transparency, and whether government reforms can truly serve the people.
Bottom line: The 5% fuel tax is more than a policy, it’s a test of trust. And how the government responds will shape how Nigerians feel about future reforms.