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NEWS

FG Defends 5% Fuel Surcharge, Assures Funds Will Fix Roads

September 9, 2025 • 2 min read

By Ademola Adekusibe

September 9, 2025

The Federal Government has defended its plan to introduce a 5% fuel surcharge, insisting that the policy is designed to generate sustainable funding for road infrastructure across the country.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, explained that the surcharge is not an additional tax but a provision already contained in the Federal Roads Maintenance Agency (FERMA) Act of 2007. He noted that government is only ensuring proper implementation so that the proceeds will be channelled directly into road maintenance and rehabilitation.

“The surcharge has always been part of the law. What we are doing now is to implement it in a structured way so that the funds will go into fixing our roads,” Oyedele said.

He assured Nigerians that the surcharge would not impose any extra burden on the public, stressing that the mechanism has been designed to avoid disrupting fuel prices at the pump.

Oyedele added that the measure is part of the government’s broader fiscal reforms, which seek to strengthen revenue collection while ensuring transparency and accountability in public spending.

Officials believe the surcharge will help close the funding gap in road maintenance, reduce dependence on budgetary allocations, and create a more reliable system for infrastructure financing.