Taiwo Oyedele, Nigeria’s finance and coordinating economy minister, stated that the federal government will add a levy on petroleum products only after the economy stabilizes and household incomes improve. Oyedele made these remarks during an interview conducted at the 2026 International Monetary Fund and World Bank gatherings in Bangkok, Thailand. According to Punch, the official emphasized that the state’s immediate priority is finishing current economic reforms and restoring growth before adding new costs for citizens.
Oyedele explained that adding a tax right after ending petrol subsidies would burden residents further. He noted that in many nations, levies constitute between 20 and 80 percent of the final pump price, while numerous African states apply six to 10 distinct charges on fuel. AllAfrica reported that the minister argued suppressing prices has not worked in any country, suggesting that the better approach is to ensure incomes rise faster than prices to build a stronger middle class.
The revenue generated from the proposed charge would be directed toward road infrastructure and the creation of a fuel reserve. This reserve would help moderate the impact of future price shocks and provide the state with a mechanism to temporarily waive taxes during market disruptions. Oyedele said this approach allows the government to respond to global petroleum market fluctuations more effectively than relying solely on subsidies.
The official also detailed the sequence of recent economic reforms. He explained that the state first ended petrol subsidies and then permitted the currency to adjust slowly, noting that the exchange rate strongly influences fuel costs. AllAfrica reported that Oyedele said the subsidy ended completely in October 2023, when support for both petrol prices and foreign exchange concluded. He added that legislation requires a gazette order signed by the finance minister before any new tax takes effect, ensuring the process is transparent and not implemented quietly.