Former Labour Party presidential candidate, Peter Obi, has criticized the Federal Government’s newly announced 5% tax on refined fossil fuel sales, describing it as an unnecessary burden on already struggling Nigerians.
The Federal Government had announced the introduced a 5% surcharge on refined fossil fuel sales, including petrol, diesel, and aviation fuel, effective January 1, 2026.
This measure is embedded in the Nigeria Tax Administration Act, one of four pivotal tax reform laws President Bola Tinubu signed in June 2025
However, Obi in a statement on Wednesday, questioned the timing of the tax, which covers petrol and diesel, insisting that many citizens can no longer afford basic transportation costs.
“When will Nigerians truly breathe?” Obi asked. “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.”
He noted that President Bola Tinubu recently boasted about meeting the country’s revenue target, yet rather than providing relief, his administration was introducing additional hardship.
“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,” Obi said.
The former governor of Anambra State also faulted the rising cost of Compressed Natural Gas (CNG), which he said had climbed from ₦230 to ₦450 despite earlier promises of subsidies.
“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,” Obi added.
He argued that if Nigeria truly had “excessive” revenues as claimed, the funds should be used to improve critical sectors and reduce poverty, rather than taxing citizens further.
“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?” Obi asked.
Obi called on the Federal Government to suspend the 5% fuel tax until Nigerians begin to see tangible improvements in their daily lives from its policies.
“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,” Obi stated.
Reaffirming his campaign message, Obi concluded: “A new Nigeria is POssible.”
