JUST IN : Fuel, How FG’s Tax Will Affect Workers, Industrialists, Traders and Others.
JUST IN : Fuel, How FG’s Tax Will Affect Workers, Industrialists, Traders and Others.
President Bola Ahmed Tinubu has signed into law a new 5% excise duty on petroleum products, covering petrol, diesel, and jet fuel.
The policy, which excludes coal, cooking gas, and other energy sources to ease the burden, is expected to affect virtually all Nigerians—from traders and teachers to students, artisans, and frequent travelers, according to a report from DailyTrust.
While the levy may appear modest, analysts warn that its impact will be felt across daily living and business operations.
For instance, in Kano, a motorcyclist who currently spends ₦25,000 weekly on fuel will now need ₦26,000. Though the ₦1,000 difference seems small, the added expense over time could affect essentials such as food and school fees.
Similarly, in Ibadan, a trader who powers her generator with ₦10,000 worth of fuel will now spend ₦10,500. Over a year, the cumulative cost could eat into profits and affect business stability.
Artisans are not exempt. A welder who spends ₦10,000 on fuel will now need ₦10,500, a seemingly minor increase that could still limit earnings.
Teachers and students also face higher expenses. In Ilorin, a teacher allocating ₦50,000 monthly for fuel and transport will now require ₦52,500, an annual increase of about ₦30,000—enough to buy school supplies or food.
Likewise, a university student in Zaria who budgets ₦25,000 for fuel monthly will pay ₦26,250, an extra ₦1,250 that could otherwise go toward textbooks.
The situation appears tougher for motorists. In Lagos, a car owner who fills their tank with ₦40,000 worth of petrol twice weekly will now pay ₦42,000.
That translates to an additional ₦100,000 annually, money that could cover insurance or maintenance costs.
Even air travelers will feel the pinch, with jet fuel included in the tax. Ticket prices for flights such as Lagos to Abuja could rise by ₦10,000 to ₦14,000, significantly raising costs for frequent flyers—including businesspeople, politicians, and professionals.
Although the government argues that the levy is necessary to boost revenue, many Nigerians fear it will further strain households and businesses already battling with high living costs.
