The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has clarified that the proposed fuel import ad valorem tax will not take effect immediately, insisting that the levy will only be implemented when Nigeria’s economic conditions become more stable specifically when the naira strengthens and global crude oil prices decline.
Speaking on the sidelines of a fiscal policy briefing in Abuja, Oyedele said the federal government is mindful of the current hardship faced by Nigerians and has no intention of imposing new fuel-related costs that could escalate pump prices in the near term. He emphasized that the tax framework is part of a long-term fiscal restructuring strategy designed to strengthen public finances without imposing undue burden on citizens.
“The fuel tax will not commence now. It is a policy framework that becomes active only when the economy is stronger, the naira appreciates significantly, and global oil prices drop to levels that make the introduction of the ad valorem levy bearable for Nigerians,” Oyedele stated.
His comments come amid rising public concern that the tax expected to be approximately 15 percent on fuel imports could push petrol prices above ₦1,000 per litre. Petroleum marketers recently warned that implementing the tariff in the current economic climate would trigger severe inflationary pressure and worsen the already rising cost of transportation and living.
Addressing the fears, Oyedele maintained that the federal government would prioritize economic stabilization before activating the tax, adding that the policy was designed with safeguards to prevent sudden price shocks. “We are committed to responsible fiscal reform. Nigerians will not face the burden of this tax until conditions are right,” he said.
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Industry analysts note that the clarification may calm market uncertainties, particularly as the nation continues to navigate exchange rate pressure, high logistics costs, and subsidy-linked debates. The federal government had earlier signaled a shift toward improving non-oil revenue, but concerns grew after President Bola Tinubu approved the tariff template.
With the government positioning fuel taxation as a future revenue buffer rather than an immediate measure, attention now turns to how quickly the administration can achieve currency stability and energy market reforms conditions seen as crucial before consumers feel additional costs at the pump.
More policy updates are expected as the fiscal reform committee continues consultations with oil marketers, economic experts, and civil society groups.