The Federal Government has said there is no immediate plan to implement the proposed 5% Petroleum Products Tax, which has sparked public outrage across the country.
Speaking at a press briefing in Abuja on Tuesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, clarified that although the tax is part of new tax legislation, it will not be enforced anytime soon.
This announcement comes amid growing concerns from Nigerians and threats from organised labour, who had warned the government to cancel the plan or face a nationwide strike.
“The implementation of the 5% fuel tax is not under consideration at the moment,” Edun said. “We are fully aware of the current economic challenges, and any decision on this matter will be made with the welfare of Nigerians in mind.”
The controversial tax is part of the provisions in the recently passed Petroleum Industry Act (PIA), which aims to reform the oil and gas sector. However, since news of the proposed fuel tax became public, many Nigerians have expressed anger, fearing it would further raise fuel prices and worsen the cost of living.
Labour unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), had strongly condemned the move, describing it as insensitive and ill-timed. They issued a stern warning to the government to drop the plan or face mass protests and industrial action.
Edun’s statement appears to be an attempt to ease public tension and prevent further unrest.
In recent months, Nigerians have been grappling with high inflation, increased electricity tariffs, and rising food prices. The removal of fuel subsidy in 2023 also led to a sharp increase in pump prices, further straining household incomes.
The government’s latest assurance may calm nerves temporarily, but organised labour and civil society groups have said they will continue to monitor the situation and resist any policy that would deepen economic hardship.
As of now, the 5% fuel tax remains part of the law—but not one that the government plans to implement immediately.
