The Digest:
Taiwo Oyedele, Chairman of Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee, has clarified that the proposed 5% fuel tax should only be implemented under specific economic conditions to avoid burdening citizens. He emphasized that the tax must be introduced strategically, when the naira gains value or global oil prices decline, to prevent an increase in pump prices.
Key Points:
- Oyedele stated the tax should be timed to coincide with naira appreciation or falling crude prices to neutralize its impact.
- He stressed that any revenue generated must directly improve citizens’ quality of life, such as through better road infrastructure.
- The tax would be collected by the Nigerian Revenue Service (NRS), not FERMA, to ensure proper administration.
- Oyedele denied any immediate plans to introduce the tax, calling it a future legislative consideration.
- The committee is consolidating over 15 tax laws into a single, simplified document to enhance clarity and efficiency.
- Public concerns about new taxes are premature, as the focus remains on reforming existing frameworks.
- Revenue from the tax would be earmarked specifically for road maintenance and safety improvements.
Sources: Arise TV Interview
