Sele Media Africa
www.selemedia.org
Reported by Amos Dachung – Sele Media Africa Reporter
September 5, 2025

Opposition Mounts Against Federal Government’s 5% Petrol Tax

A growing chorus of opposition is challenging the Nigerian Federal Government’s recent implementation of a 5% tax on petrol and diesel, a policy aimed at generating approximately ₦796 billion annually to bolster non-oil revenue streams. Critics argue that the tax exacerbates the financial strain on citizens already grappling with the aftermath of fuel subsidy removal and escalating living costs. [1]

The African Democratic Congress (ADC) has been particularly vocal, denouncing the tax as “deeply unfair” and “cruel,” especially given the current economic hardships faced by many Nigerians. ADC’s National Publicity Secretary, Bolaji Abdullahi, questioned the government’s fiscal management, highlighting ongoing borrowing despite claims of increased revenue. [2]

Economic experts have also raised concerns. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), warned that the tax could intensify inflationary pressures, leading to higher transportation and food costs. He emphasized the need for strategic implementation to avoid further economic strain. [3]
Civil society groups, including the Arewa Youths Assembly, have urged the government not to transfer the financial burden of transitioning to renewable energy onto ordinary citizens. They advocate for policies that promote clean energy without exacerbating poverty. [3]

The 5% fuel tax, part of the Nigeria Tax Administration Act signed into law by President Bola Tinubu on June 26, 2025, applies to all fossil fuel products, including petrol, diesel, and aviation fuel. Exemptions are made for household kerosene, cooking gas, and Compressed Natural Gas (CNG). While the government asserts that the tax is essential for fiscal sustainability, the mounting opposition underscores the need for careful consideration of its socioeconomic impacts.

For more updates on this developing story, stay tuned to Sele Media Africa.
Citations:
1.⁠ ⁠Nigerian Observer: nigerianobservernews.com/2025/08/fg-eyes-n796bn-annually-from-5-petrol-surcharge/?utm_source=chatgpt.com
2.⁠ ⁠Daily Post Nigeria: dailypost.ng/2025/09/04/extra-burden-on-struggling-nigerians-adc-slams-5-petrol-tax/?utm_source=chatgpt.com
3.⁠ ⁠Vanguard News: www.vanguardngr.com/2025/09/opposition-mounts-against-fgs-5-tax-on-petrol-diesel/?utm_source=chatgpt.com