BREAKING: Tinubu Introduces 5% Fuel Tax, Nigerians to Pay ₦500 Extra on Every ₦10,000 Purchase
Under the policy, a consumer who spends ₦10,000 on fuel will now be required to pay an additional ₦500 in tax, bringing the total to ₦10,500.
Advertisements
Tinubu Introduces 5% Fuel Tax, Nigerians to Pay ₦500 Extra on Every ₦10,000 Purchase
Nigerians are bracing for another financial hit as the federal government has introduced a 5% tax on petrol consumption, beginning January 2026.
The new levy, contained in the Harmonized Tax Act recently signed into law by President Bola Ahmed Tinubu, will see motorists, transporters, and businesses paying more at filling stations.
Advertisements
Under the policy, a consumer who spends ₦10,000 on fuel will now be required to pay an additional ₦500 in tax, bringing the total to ₦10,500.
With fuel already among the biggest drivers of inflation, the new tax is expected to trigger another wave of price hikes in transportation, food, and other essential goods. Economists and citizens alike fear the move could further deepen hardship in a country where many households are already struggling to cope with soaring living costs.
“This will worsen the situation,” said a commercial driver in Abuja. “Transport fares will go up again, and ordinary people will be the ones to suffer.”
Advertisements
The government, however, argues that the measure is part of a broader effort to boost revenue and reduce Nigeria’s reliance on borrowing. Still, critics warn that the timing could not be worse, with unemployment and inflation already at record highs.
As the new tax takes effect in the coming months, all eyes will be on how Nigerians adapt—and how the government responds to the growing public outcry.
