The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has revealed that the Federal Government will introduce fuel taxes after ongoing economic reforms are completed, the economy stabilises and Nigerians’ incomes improve sufficiently to accommodate the additional costs.
Oyedele explained that imposing fuel taxes immediately after the removal of the petrol subsidy would place additional pressure on households already dealing with rising living costs.
“You remove subsidy, you can’t immediately impose taxes. That would be insensitive. You push the people to the wall,” he said.
The minister spoke during an exclusive interview with ARISE News on the sidelines of the 2026 International Monetary Fund and World Bank Annual Meetings in Bangkok, Thailand.
He noted that fuel taxes are common in many countries, including several African nations, where petroleum products attract multiple taxes.
“Now, if you look across the world, between 20 to 80% of price is taxes. Many of the countries in Africa have between six to 10 different taxes on fuel products,” he said.
However, Oyedele said Nigeria must first complete its reforms, restore economic growth and improve household incomes before introducing similar measures.
He argued that economic prosperity should be measured not only by the prices of goods but also by people’s ability to afford them through higher incomes.
“So, for us, it’s complete the reform, stabilise the economy, bring growth back,” he said.
The minister added that the government’s objective was to grow incomes faster than prices rise, expand the middle class and improve Nigerians’ living standards.
He confirmed that fuel taxes would be introduced when economic conditions allowed households to absorb the extra costs.
“So, at the appropriate time, when the economy has stabilised, and income level would be able to accommodate it, then those taxes will come,” he said.
Oyedele said revenue from the proposed taxes would be dedicated to road infrastructure and the development of fuel reserves to help cushion the impact of future disruptions in the petroleum market.
He explained that the reserves could serve as a buffer against supply shocks, while the government could temporarily reduce or waive taxes when necessary.
The minister also assured Nigerians that the introduction of any fuel tax would follow the legally required process and would not be done secretly.
He said a relevant order must be published in the official gazette before a tax can take effect, adding that the government intended to make the reasons for the policy and its expected benefits clear to the public.
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