Nigeria plans to introduce fuel taxes when the economy stabilises and household incomes can accommodate the additional costs, Finance Minister Taiwo Oyedele has said.
Oyedele explained that the government would first complete ongoing economic reforms, restore growth and improve Nigerians’ purchasing power. He said introducing new fuel taxes immediately after removing petrol subsidies would place more pressure on households.
The minister spoke during an exclusive interview with ARISE News on the sidelines of the 2026 International Monetary Fund and World Bank Annual Meetings in Bangkok, Thailand.
He argued that the government must consider citizens’ financial circumstances before introducing additional petroleum-related charges. “You remove subsidy, you can’t immediately impose taxes. That would be insensitive. You push the people to the wall,” he said.
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Oyedele Explains Why Government Wants to Introduce Fuel Taxes
Oyedele noted that fuel taxation remains common across many countries. He said petroleum products account for a significant share of tax revenue in several economies.
“Now, if you look across the world, between 20 to 80% of price is taxes. Many of the countries in Africa have between six to 10 different taxes on fuel products,” he said.
However, he maintained that Nigeria must first improve economic conditions before adopting a similar approach. According to him, stronger household incomes would help Nigerians absorb any additional costs.
The minister also argued that policymakers should focus on improving earnings rather than keeping prices artificially low. He said the government wants income growth to outpace price increases and expand the middle class.
He added that the administration’s economic strategy seeks to improve prosperity rather than rely on price suppression. Readers can also follow RMAFC’s Push for Chinese Investment for more economic news.
Fuel Tax Revenue May Fund Roads and Strategic Reserves
Oyedele said the proposed taxes would serve specific economic purposes beyond raising government revenue. He explained that the proceeds would support road infrastructure and the development of fuel reserves.
According to the minister, strategic reserves could help Nigeria respond to future disruptions in petroleum supply. They could also provide a buffer against sudden price shocks in the international or domestic market.
He said
