Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has said that the proposed 5 per cent fuel surcharge will not be implemented until the economy shows clear signs of improvement.
Speaking at the Haulage and Logistics Magazine Conference and Exhibition in Lagos, Oyedele said the measure, aimed at funding road maintenance, would only take effect when the naira strengthens or global crude oil prices fall.
He explained that the surcharge, first introduced under former President Olusegun Obasanjo, was designed to dedicate part of fuel revenues to road repairs — 40 per cent for federal roads and 60 per cent for states and local governments.
“The idea is brilliant and already in practice in more than 150 countries,” he said, adding that most of Nigeria’s 200,000 kilometres of roads remain in poor condition.
Oyedele disclosed that although the Federal Roads Maintenance Agency (FERMA) had sought to collect the levy after the removal of fuel subsidy, the committee opposed the move, describing it as “insensitive” at this time.
He said the draft tax law includes the surcharge but provides safeguards, requiring the Minister of Finance to issue a formal order before implementation.
Oyedele also assured that ongoing tax reforms will ease the burden on transport operators by eliminating multiple levies, reducing costs, and improving efficiency.
“We are not introducing new taxes; we are removing the many duplicated ones that frustrate businesses,” he said.
He added that under the reforms, small transport and logistics firms with annual turnover below ₦100 million will be exempt from company income tax and eligible for VAT refunds.
