LAGOS
The Federal Government’s plan to implement a 5% surcharge on refined petroleum products, including petrol and diesel, from January 1, 2026, has triggered widespread opposition from industry stakeholders, political actors, and civil society organisations.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that the tax could force many of its members out of business. Political voices, including the African Democratic Congress (ADC) and Labour Party’s 2023 presidential candidate, Mr. Peter Obi, also condemned the policy, describing it as a measure that will worsen hardship for Nigerians.
The levy is contained in the Nigeria Tax Administration Act signed into law by President Bola Tinubu on June 26, 2023. Government officials argue the surcharge is aimed at boosting non-oil revenue and ensuring fiscal sustainability.
But critics insist the policy will drive up pump prices and deepen poverty. With petrol already averaging N950 per litre—an increase of over 382% from N197 when Tinubu assumed office in May 2023—stakeholders say the new tax would further impoverish Nigerians.
Juliet Alohan-Ukanwosu, Executive Director of Extractive360, described the surcharge as “a poorly thought-out idea,” warning of its multiplier effect on the cost of living. Policy Alert’s Tijan Bolton added that low- and middle-income households would bear the brunt, with many already resorting to firewood due to rising energy costs.
Civil society groups have vowed to resist the policy. The Joint Action Front (JAF) rejected the tax outright, pledging to mobilise Nigerians against what it called “an evil and wicked plan to impose more suffering.”
PETROAN President, Dr. Billy Gillis-Harry, said compliance would be difficult for marketers, while other sector stakeholders, including OGSPAN and Petroleumprice.ng, labelled the levy “insensitive” and called for a review.
Opposition parties also weighed in. The ADC branded the tax “cruel and deeply insensitive,” accusing the government of masking its failures with false revenue claims. Peter Obi argued that the surcharge should be suspended until Nigerians see tangible improvements in living conditions.
Economists warned that without safeguards, the policy risks fuelling inflation and public discontent. Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise (CPPE) cautioned that the timing—just before the 2026 election cycle—could undermine trust in reforms.
Youth groups, including the Arewa Youths Assembly, urged government not to transfer the financial burden of the energy transition to ordinary Nigerians.
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