The 2023 presidential candidate of the Labour Party, Peter Obi and African Democratic Congress (ADC) have faulted the Federal Government’s introduction of a 5% petrol tax, describing it as an additional burden on Nigerians still grappling with the effects of subsidy removal.
Obi, in a post late Wednesday, argued that this move will further burden Nigerians who are already struggling with transportation costs.
The opposition leader questioned the prioritisation of revenue generation over citizens’ welfare, suggesting that excess revenues should fund education, healthcare, and poverty reduction.
He emphasised that leadership should focus on reducing suffering and showing care and compassion, rather than imposing burdens.
“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.
“That is, Nigerians will pay a 5% tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation.
“Mr. President just yesterday boasted that Nigeria has met its revenue target for the year. Yet instead of easing hardship, the government imposes more burden on Nigerians.
“Even the so-called alternative, CNG, has become unaffordable, rising from about ₦230 to ₦450, while the promised subsidies on the CNG have quietly vanished.
“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?
“This 5% fuel tax should wait until Nigerians begin to see tangible improvements in their lives from all the many promises from Mr. President.
“Leadership is not about giving a burden, it is about reducing suffering, it is about care and compassion,” he wrote.
In a similar reaction, National Publicity Secretary of the ADC, Mallam Bolaji Abdullahi in a statement said the timing of the measure was “deeply insensitive” and called for its suspension until citizens begin to feel tangible relief from ongoing economic reforms.
According to Abdullahi, the government’s claims of improved revenue collection do not align with current fiscal realities. He argued that despite reports of record earnings, the Federal Government continues to borrow heavily, raising concerns about the sustainability of its policies.
“The ADC finds this tax deeply unfair at a time when the majority of Nigerians are still reeling from the effects of fuel subsidy removal. Regardless of the economic motives, what is clear is that citizens need relief, not more pressure,” Abdullahi stated.
The party pointed out that budgeted revenues for 2025 remain far from being realised, with statutory allocations and VAT receipts falling short of projections.
It also noted that the continued depreciation of the naira had further weakened the purchasing power of Nigerians, increasing the cost of food, rent, and transportation.
The ADC expressed concern about recent hikes in service charges, including the rise in international passport fees, which it said make essential services harder to access for ordinary citizens.
While acknowledging the challenges of governance, the party urged the administration to prioritise policies that reduce poverty, stabilise the exchange rate, and lessen the economic burden on households.
“Nigeria cannot afford policies that push more families below the poverty line. What our people need now are measures that support livelihoods and restore confidence in the economy,” the statement added.