By Our Reporter
The Federal Government has moved swiftly to douse tensions over a proposed 5 per cent tax on petroleum products, clarifying that there are no immediate plans to enforce the controversial levy. According to officials, this means that the tax will not be implemented until further reviews and public consultations are conducted. There is no specific timeframe for when these evaluations will take place, emphasising the government’s intention to proceed cautiously and consider public opinion before making any final decisions.
Finance and Economy Coordinating Minister, Wale Edun, gave the assurance at a press briefing in Abuja on Tuesday, insisting that fears of an imminent implementation were unfounded.
The pushback comes after details of the tax provision, embedded in the recently signed Finance Act, surfaced in public space late last week. Civil society groups, fuel marketers, and ordinary Nigerians took to social media and community platforms to decry the measure, warning it would further escalate the cost of petrol, transport fares, and food prices at a time of widespread hardship.
The uproar intensified when organised labour, led by the Nigeria Labour Congress (NLC) and the National Union of Petroleum and Natural Gas Workers (NUPENG), issued a stern ultimatum to government: drop the idea or face a nationwide strike.
While officials maintain that the 5 per cent tax was crafted as a revenue-mobilisation tool under the new fiscal framework, critics argued that its timing was ill-advised, coming just months after the removal of fuel subsidy. Analysts also warned that the measure could trigger a ripple effect across the economy, compounding inflationary pressures already choking households.
By Tuesday, the federal government had little choice but to backtrack. Edun reassured Nigerians that the tax clause remains only on paper and would not be rolled out without broad consultations.
For now, the announcement may calm nerves, but public trust remains fragile. Many citizens say they will remain vigilant, wary that the measure could be quietly resurrected once street protests and labour threats subside.