Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy, has denied reports that the Federal Government plans to introduce a fuel tax when the economy stabilises and Nigerians’ incomes improve.
In a post on X on Tuesday, Oyedele said his remarks during an interview with ARISE News had been misrepresented, insisting that a fuel tax was not being considered.
However, during the interview with Rotus Odiri, ARISE News business correspondent, on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, the minister said fuel taxes could be introduced when income levels improve enough for Nigerians to accommodate them.
Oyedele explained that taxes account for between 20 and 80 per cent of pump prices in some countries, while many African countries impose between six and 10 different taxes on fuel products.
He said introducing a fuel tax while petrol was still subsidised would have been counterproductive because the government would effectively be paying the tax itself.
The minister also described imposing the levy immediately after the removal of the petrol subsidy as insensitive to Nigerians.
“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,” Oyedele said.
“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.”
In his Tuesday post, Oyedele reiterated that introducing a fuel tax at this time would be insensitive following the removal of the petrol subsidy.
He described reports claiming that the government would introduce the levy once the economy stabilised as “fake news”.
