The minister of finance and coordinating minister of the economy, Taiwo Oyedele, has denied saying the federal government would introduce a fuel tax once the economy stabilises and Nigerians’ incomes improve.
In a post on X on Tuesday, Oyedele said his comments during an interview with ARISE News had been misrepresented, insisting that a “fuel tax is not on the table”.
However, during the interview with Rotus Odiri, ARISE News business correspondent, on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank annual meetings in Bangkok, Thailand, Oyedele said the tax could be introduced when income levels had improved sufficiently for Nigerians to afford it.
The minister explained that taxes account for between 20 and 80 per cent of petrol pump prices in some countries, while many African nations impose between six and 10 different taxes on fuel products.
He said introducing a fuel tax while petrol was still subsidised would have been counterproductive because the government would effectively be paying the tax itself.
According to Oyedele, imposing the levy immediately after the removal of the petrol subsidy would also have been insensitive to Nigerians.
“The objective should be that instead of trying to suppress prices, which hasn’t worked for us, it hasn’t worked for any country in the world, not one. Instead of trying to suppress prices, think about how to grow income faster than prices rise,” Oyedele said.
“That’s how you bring prosperity and grow the middle class and that is exactly what we are doing as led by Mr. President himself.
“At the appropriate time, when the economy has stabilised and income level will be able to accommodate it, those taxes will come. Not because we want to impose taxes.”
In his post on Tuesday, the minister repeated that introducing a fuel tax at this stage would be insensitive following the removal of the petrol subsidy.
He also described reports claiming that the government would introduce the levy once the economy stabilised as “fake news”.