Fuel Prices Set to Rise as Government Pushes 5% Road Tax on Petrol and Diesel

Lawmakers Demand Long-Overdue Highway Maintenance Fee, Blaming Funding Gaps for Nigeria’s Crumbling Roads

Nigerians may soon pay more for petrol and diesel as the federal government moves to enforce a dormant 5% road tax on fuel purchases—a measure officials say is critical to fixing the country’s collapsing highway network.

The controversial charge, buried in a 2007 law but never implemented, resurfaced during a heated hearing by the House of Representatives on Monday. With road maintenance budgets falling catastrophically short—N880 billion needed annually versus just N168 billion allocated for 2025—lawmakers and works ministry officials argued the levy could stem the crisis.

“Every year, our roads get worse while repair funds evaporate. This isn’t a new tax—it’s the law being ignored,” insisted committee chairman Francis Waive, as FERMA’s MD revealed the agency has struggled for years without the promised funding. The push comes despite recent fuel price cuts by NNPC and Dangote to N875-N895 per litre, leaving consumers bracing for another financial squeeze.

Critics fear the timing could spark public backlash, but ministers warn Nigeria’s highways—vital for commerce and safety—can’t wait any longer for solutions.

 

 

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