Lagos Residents React to Proposed 5% Fuel Tax: Concerns Over Costs and Transparency

The proposed 5% fuel tax on petrol and diesel has sparked mixed reactions across Lagos, as Nigerians debate the potential impact on household budgets and daily transportation costs. Scheduled to take effect in January 2026, the federal government clarified that the levy is not a new tax but a reinstatement under the 2025 Tax Administration Act aimed at harmonisation and transparency. Social media platforms have since been flooded with discussions on the controversial proposal.

Lagos residents have voiced concerns over the financial burden the surcharge might bring. Mrs. Ladi from Ikotun expressed her worries, saying, “The issue of taxing individuals 5 per cent for purchasing fuel is wrong. The current situation we are in, not everyone can afford that, and including this would be a real struggle.” Many commuters and daily transport operators fear the tax could significantly increase living costs.

Transparency and fair pricing at fuel stations are also major concerns. Jeremiah, an Apapa resident, emphasized the need for strict monitoring, noting, “One litre should be one litre, so that the charges of the percentage will not affect buyers massively. The government should introduce a committee or enforcement to ensure that every filling station is being monitored.” Fuel attendants echoed these worries, highlighting the challenges they face in implementing government directives amid rising public complaints.

Daily commuters, including okada riders and transport operators, highlighted the potential strain on families and businesses. Andrew Olive from Idimu explained, “The tax will affect people like us massively, especially those of us who have budgets and families to run.” Another rider lamented the cumulative costs of living, stressing that additional levies could further stretch already tight finances.

Government officials have sought to calm public fears, with Finance Minister Wale Edun stressing that the 5% surcharge has existed since 2007 under the Federal Road Maintenance Agency Act. He clarified, “The inclusion of the surcharge in the 2025 Nigeria Tax Administration Act does not mean an automatic introduction of a new tax… There is no immediate plan to implement any surcharge, and no commencement order has been issued.” Officials maintain that the measure is aimed at harmonising tax regulations and promoting transparency, rather than introducing fresh taxation.

source: the sun