Nigerians are set to pay more for petrol and diesel from January 2026 as the Federal Government moves to introduce a 5 percent tax on all refined fossil fuel sales, a policy that has triggered criticism from opposition voices and economic analysts.
Former Labour Party presidential candidate Peter Obi condemned the decision, describing it as insensitive and ill-timed given the economic hardship facing millions.
In a post on X (formerly Twitter) on Thursday, Obi queried the government’s priorities, noting that the move comes just days after President Bola Tinubu declared that Nigeria had met its revenue target for the year.
“When will Nigerians truly breathe? A timely and relevant question, as a new 5% tax on all refined fossil fuel sales, including petrol and diesel, has just been announced by the Federal Government,” Obi wrote.
He said instead of easing hardship, the administration was piling on more burdens.
“If our revenues are truly ‘excessive’ as claimed, should they not first be used to fund education, healthcare and pulling Nigerians out of poverty? Why tax citizens who cannot even breathe anymore?” he added.
Obi also lamented the rising cost of alternative fuels, stating that the price of Compressed Natural Gas (CNG) has surged from about ₦230 to ₦450, despite earlier promises of subsidies.
Under the new arrangement, motorists will pay ₦500 for every ₦10,000 worth of petrol purchased, with the tax collected at the point of sale.
Government officials insist the measure will boost revenue, reduce carbon emissions, and encourage a transition to cleaner energy sources. However, products such as kerosene, Liquefied Petroleum Gas (LPG) and CNG will be exempted from the tax as they are considered cleaner alternatives.
Energy experts and economists warn the tax will likely raise transport fares and food prices, deepening the cost-of-living crisis already worsened by subsidy removal and inflation.
While the government argues the move aligns with global climate goals, critics say its timing could make life harder for Nigerians without providing meaningful cushioning measures.
Leave a Reply