- Finance Minister Taiwo Oyedele said reports claiming Nigeria plans to introduce a fuel tax misrepresented his comments during a recent interview
- Oyedele clarified on Tuesday, October 20, 2026, following an interview at the IMF and World Bank annual meetings in Bangkok
- The controversy renewed concerns among Nigerians already struggling with higher living costs since petrol subsidies were removed in 2023
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The federal government has dismissed reports that it plans to introduce a fuel tax in Nigeria, describing the claims as misleading and insisting that the levy is not on its current agenda.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the clarification in a post on his official X account on Tuesday, October 20, 2026.
Source: Getty Images
Oyedele said his comments during an interview with ARISE News had been misrepresented.
He said:
“In my interview with ARISE News, I was clear: a fuel tax is not on the table."
The minister added that imposing an additional tax on petrol under the prevailing economic conditions would be insensitive to Nigerians still grappling with the effects of subsidy removal.
He stated:
“Having removed the fuel subsidy, it would be insensitive for government to impose a fuel tax at this time.”
How the controversy began
The reports followed comments Oyedele made during an interview on the sidelines of the 2026 annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok, Thailand.
During the interview, the minister discussed how some countries generate revenue from petroleum products, noting that taxes account for between 20% and 80% of petrol pump prices in certain countries, Nigerian Tribune reports.
He also observed that several African countries impose multiple taxes on petroleum products.
Oyedele explained that introducing a fuel tax while petrol subsidies were still in place would have been counterproductive, as the government would effectively have been paying the tax itself.
He also argued that the priority should be to grow incomes faster than prices rise rather than suppress prices.
His comments were subsequently interpreted in reports as suggesting that the government could introduce a fuel tax once economic conditions improved and household incomes increased.
However, the minister's latest clarification rejected the interpretation that the government had announced plans to introduce the levy.
Source: Facebook
The controversy comes amid concerns about the cost of living following the removal of petrol subsidies in 2023, which contributed to higher transportation and operating costs for households and businesses.
FG predicts new naira to dollar exchange rate
Earlier, Legit.ng reported that Taiwo Oyedele, Nigeria's Minister of Finance and Coordinating Minister of the Economy, has cautioned that restoring petrol subsidies could push the naira as low as N4,000 to the dollar, warning that even a hint of policy reversal would be enough to rattle financial markets.
Oyedele made the remarks at a press briefing following the International Monetary Fund and World Bank annual meetings in Bangkok, Thailand, on Monday, October 19, according to a BusinessDay report.
The minister said foreign and local investors would not wait for a formal policy announcement before reacting.
Source: Legit.ng