Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has clarified that the levy predates President Bola Tinubu’s administration by nearly two decades.
Speaking on Channels Television’s The Morning Brief on Tuesday, Oyedele emphasized that the surcharge was originally enacted in 2007 but never fully implemented due to ongoing fuel subsidies, countering accusations that it represents a new burden imposed by the current government.
The surcharge, which applies to petroleum products and is set to be collected by the Federal Road Maintenance Agency (FERMA), has sparked widespread backlash in recent days.
Civil society organizations, trade unions, and the Organized Private Sector have decried it as an additional tax that could further strain Nigeria's economy, already grappling with inflation rates exceeding 22% and the lingering effects of fuel subsidy removal.
The Trade Union Congress (TUC) has even threatened industrial action, while business leaders have urged the government to reconsider the policy.
Speculation that the levy would commence in January 2026 has fueled protests and social media campaigns, with many labeling it as "Tinubu's latest tax grab."However, Oyedele firmly dispelled these notions during his interview, stating, “One very important message for people to know is that this surcharge was not introduced by this government. It was introduced in 2007.”
He explained that the original legislation mandated FERMA to gather the funds, with 40% allocated to federal roads and 60% to state roads, all in a bid to bolster the nation's crumbling infrastructure.
“And then it was not implemented because the government was subsidising fuel,” he added, highlighting how the subsidy regime at the time rendered the collection mechanism dormant.Oyedele further noted that the surcharge was not even part of the initial tax reform bills submitted by President Tinubu to the National Assembly earlier this year.
“While we were doing this tax reform, it was not even in the original proposal, so it was not like the President proposed it to the National Assembly,” he said.
Instead, it resurfaced during deliberations on streamlining tax collection to avoid overlaps among agencies.
“But in the process of working on the bills, these issues came up, and then the decision was made that we should not have different agencies collecting taxes,” he elaborated.
This move, according to Oyedele, aims to consolidate collections under a more efficient framework, potentially benefiting road maintenance without introducing entirely new levies.Defending the policy's merits, Oyedele argued that Nigerians stand to gain from improved road networks.
“But Oyedele believes the surcharge will help the country maintain its road infrastructure, stressing that Nigerians will benefit from it,” he asserted, pointing to the dire state of highways plagued by potholes, erosion, and neglect.
The chairman also addressed rumors about an imminent rollout, stating there is “no indication that the implementation will start in January,” contrary to media reports that have heightened public anxiety.
This clarification comes on the heels of the Federal Government's broader defense of the surcharge last week, where officials described it as a "strategic service fee" rather than a punitive tax.
The Ministry of Petroleum Resources had projected that the levy could generate over ₦500 billion annually for a dedicated Fuel Infrastructure Development Fund, funding pipeline upgrades and refinery enhancements.
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