The Federal Government has outlined plans to utilize future fuel-tax revenue to finance road infrastructure and establish strategic fuel reserves aimed at protecting Nigeria from disruptions in the global petroleum market.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during an exclusive interview with ARISE News on the sidelines of the 2026 International Monetary Fund (IMF) and World Bank Annual Meetings in Bangkok, Thailand.
According to the Minister, the proposed taxes would serve a broader economic purpose beyond raising government revenue, providing resources to strengthen infrastructure and improve Nigeria’s capacity to respond to unexpected increases in fuel prices.
He explained that building fuel reserves would give the country an additional means of cushioning the domestic market against disruptions in petroleum supply.
Oyedele also identified a second potential benefit of the proposed tax arrangement, noting that the government could temporarily suspend fuel taxes during periods of significant price increases to ease the burden on consumers.
Under such an arrangement, the government would have greater flexibility to respond to international petroleum market shocks by adjusting the tax component of fuel prices rather than relying entirely on subsidies.
However, the Minister made it clear that introducing the taxes would depend on improvements in Nigeria’s economic conditions and household incomes.
He acknowledged that imposing additional fuel charges shortly after the removal of petrol subsidies could deepen the financial pressure facing households and businesses.
Rather than immediately increasing the tax burden, he said the administration’s priority was to consolidate economic reforms, restore stronger growth and ensure that Nigerians’ earnings increased sufficiently to accommodate additional costs.
The Minister maintained that improving purchasing power was more important to long-term affordability than attempting to keep prices artificially low.
His comments provide further clarification on the government’s position regarding fuel taxation, which has remained a subject of public concern since the passage of Nigeria’s tax reform legislation.
In June 2026, the Federal Government dismissed reports of an imminent fuel-tax introduction, explaining that no process was underway at the time to activate the existing surcharge provisions.
The government had also clarified that implementation would require a formal order by the Minister of Finance and publication in the Official Gazette.
Reaffirming this requirement, Oyedele said any decision to introduce fuel taxes would follow the prescribed legal process, with the government expected to explain the purpose and anticipated benefits to the public.
Although the Minister identified road development and fuel reserves as potential destinations for the revenue, he did not announce an implementation date, a specific income threshold for introducing the taxes or the proposed size of the fuel reserves.
