Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, has denied stating that the federal government will introduce a fuel tax once the economy stabilizes and citizen income levels improve.
Clarifying his position in a post on X on Tuesday, Oyedele asserted that a “fuel tax is not on the table,” explaining that his remarks during an ARISE News interview had been misunderstood.
Oyedele spoke with ARISE News business correspondent Rotus Odiri on the sidelines of the 2026 World Bank and International Monetary Fund (IMF) annual meetings in Bangkok, Thailand, where he noted that any future tax implementation would depend on Nigerians earning enough income to cushion the effect.
According to the minister, taxes account for 20 to 80 percent of fuel prices in some countries, while several African nations levy six to ten different taxes on petroleum products.
He noted that introducing a fuel tax while gasoline remained subsidized would have been counterproductive, as the government would have essentially been paying the tax itself.
The minister added that imposing such a tax immediately after removing the fuel subsidy would be unfeeling toward Nigerians.
Backstory…
Earlier reports revealed that Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, had said that implementation of a fuel tax will necessitate a ministerial order published in the Official Gazette, with the generated revenue earmarked for road infrastructure development and a fuel reserve designed to mitigate future price shocks.
He 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,” Oyedele added.
Read Also: FG to Introduce Fuel Tax When Nigerians’ Incomes Improve- Finance Minister, Oyedele
