Fuel Tax Implementation on Hold Pending Naira Recovery – FG
Fuel Tax Implementation on Hold Pending Naira Recovery – FG
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, has clarified that the proposed fuel tax will not take effect until Nigeria’s economic conditions become more favorable.
According to Oyedele, the committee is adopting a careful approach to ensure that any new tax measure does not further burden Nigerians already grappling with inflation and high living costs. He noted that the fuel tax initiative will only commence when the naira appreciates significantly against the dollar and when global oil prices decline to levels that make fuel importation and pricing more stable.
“We are mindful of the current hardship. Implementing a fuel tax now would worsen the situation. We’ll only consider it when the exchange rate improves and oil prices drop,” Oyedele explained.
The move aligns with the government’s broader fiscal reform agenda aimed at improving revenue generation without imposing excessive hardship on citizen
Experts believe that the committee’s cautious stance reflects an understanding of Nigeria’s fragile economic climate, where rising fuel costs and exchange rate volatility continue to strain household incomes
If successfully implemented under favorable conditions, the fuel tax could become a strategic revenue stream to support infrastructure development and social welfare programs without aggravating inflationary pressures.
