Nigerians welcome the delay of 5% fuel surcharge
Nigerians welcome the Delay of 5% Fuel Surchargeย
Catherine Ifeoma Samfelixย
The recent announcement by the federal government of a new enacted tax law of 5% fuel surcharge became so controversial that Nigerians began to react owing to the fact that there is a massive hunger in the land. Looking at it critically, federal government decided to postpone the implementation till January 2026.
Many economic analyst, as well as Nigerians welcome the delay, viewing it as necessary compromise owing to the hardship ravaging the nation. Many including business owners had feared the immediate introduction of the surcharge saying that it would definitely deepen the economic hardship.
According to the federal government, the surcharge introduction is a way of extending broader revenue -generation and subsidy reform measures but the delay of the implementation will certainly result in short-term revenue implications, possibly widening budget deficit if compensatory measures is left out.
However, it’s been noted that ever since President Bola Tinubu came into office, the administration has undertaken several reforms economically, including the removal of petroleum and electricity subsidies, devaluing naira. These measures while aimed at stabilizing the economy and improving revenue generation, haveย otherwise contributed to inflation and high cost-of-living, thereby creating excessive hardship in the country.ย
Fortunately, for the commuters, traders and manufacturers who rely heavily on fuel for logistics and power, see the postponement as a temporary relief, stating that if surcharge had taken effect production costs would have doubled and prices of goods would skyrocket. But then, a concern has also been raised concerning January 2026 what shall become of the nation then. An Onitsha business man says “get ready for extreme poverty and hardship in 2026”.
Prior to this delay decision, Nigeria’s parliament has passed a suit of tax reform bills. Among them were proposal to increase value-added Tax(VAT) from 7.5% to 12.5% all by 2026, they reformed how tax revenues are shared between federal and state government and strengthen tax administration.
But then, right now Nigerians are a bit relieved though they are uncertain over when and how the surcharge might eventually be implemented. The pertinent and big question remains; how can Nigeria pursue fiscal reforms without worsening the situation of her citizens who are already burdened?
Apparently, analyst believe that the decision to postpone the surcharge reflects a balancing act between economic reforms and social stability. While the government is under pressure to expand revenue, the public response or reaction has made it clearer that policies perceived as harsh or poorly timed will encounter brittle resistance.
