Fuel Surcharge Originated in 2007, Not Introduced by Tinubu’s Administration – Oyedele

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has clarified that the current administration under President Bola Tinubu did not introduce the controversial 5% fuel surcharge.

Speaking during an interview on Channels Television’s The Morning Brief on Tuesday, Oyedele explained that the surcharge was actually established back in 2007.

“This charge wasn’t created by this government—it has been in place since 2007,” he said. “However, it wasn’t implemented at the time due to the fuel subsidy regime.”

Recent reports about the possible enforcement of a 5% fee on every litre of fuel purchased have triggered widespread public concern, with critics arguing that the timing is inappropriate, especially amid ongoing economic challenges.

There were also claims that the fee would come into effect in January, although Oyedele dismissed these as unfounded.

He clarified that the surcharge was not part of the original tax reform proposals submitted to the National Assembly and was not initiated by President Tinubu.

“While we were drafting the tax reform bills, this surcharge wasn’t included initially. It only surfaced later in the legislative process,” he noted.

Oyedele explained that under the existing law, the Federal Road Maintenance Agency (FERMA) is designated to collect the surcharge, with the revenue split—40% allocated to federal road infrastructure and 60% directed to state-level road maintenance. Still, the law has not been enforced to date.

He also stressed that there is currently no confirmation of when, or if, the surcharge will be implemented, countering speculation that it would begin in January.

In response to the reports, several civil society groups and labour unions have demanded that the government halt any plans to enforce the surcharge.

The Trade Union Congress (TUC) even threatened industrial action, while representatives of the organised private sector also voiced strong opposition.

Despite the backlash, Oyedele argued that the surcharge, if eventually implemented, could serve as a sustainable funding mechanism for road maintenance across the country—ultimately benefiting the public in the long run.