Labour Party presidential candidate for the 2023 election, Peter Obi, criticised the federal government regarding the upcoming 5% tax on all fossil fuel sales, as part of a new tax law set to take effect in January 2026.
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In a statement on his X page on Wednesday evening, Obi remarked that instead of alleviating hardship, the government has only added to the burden on Nigerians. According to the new tax regulation, Nigerians will be required to pay a 5% surcharge on all fossil fuel products produced or sold within the country.
The stipulation states that the act “shall be collected at the time of a chargeable transaction, meaning at the point of sale”.
Questioning the move on social media, Obi stated that the promised subsidies on the alternative CNG have “quietly vanished”.
“When will Nigerians truly breathe? A timely and relevant question, as a new 5% tax on all refined fossil fuel sales, including petrol and diesel, has just been announced by the Federal Government
“That is, Nigerians will pay a 5% tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation.
“Mr. President just yesterday boasted that Nigeria has met its revenue target for the year. Yet instead of easing hardship, the government imposes more burden on Nigerians.
“Even the so-called alternative, CNG, has become unaffordable, rising from about ₦230 to ₦450, while the promised subsidies on the CNG have quietly vanished.
“If our revenues are truly ‘excessive’ as claimed, should they not first be used to fund education, healthcare and pulling Nigerians out of poverty?
“Why tax citizens who cannot even breathe anymore? This 5% fuel tax should wait until Nigerians begin to see tangible improvements in their lives from all the many promises from Mr. President.
“Leadership is not about giving a burden, it is about reducing suffering, it is about care and compassion,” the post reads.
