Breaking News: FG Reverses 5% Fuel Tax Plan Amid Public Outcry
By Aluta News
September 09, 2025
The Federal Government has made a sudden U-turn, reversing its plans to implement a 5% fuel tax. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this during a press conference in Abuja on Tuesday. The tax, part of the new tax legislation, had sparked widespread outrage among Nigerians, with organized labor threatening a nationwide strike if it wasn’t canceled.
The 5% surcharge on refined petroleum products was expected to generate approximately ₦796 billion annually. However, the government appears to have bowed to public pressure, putting the implementation on hold indefinitely.
According to Edun, the government currently has no immediate plan to implement the tax. This move comes after intense criticism from various stakeholders, including labor unions and the general public .
Aluta News reports that the reversal of the fuel tax plan may provide temporary relief to Nigerians, especially considering the current economic challenges. However, the government still faces the task of addressing the country’s infrastructure needs, which the tax was intended to support.
As the situation unfolds, it remains to be seen whether the government will revisit the tax plan or explore alternative revenue streams. One thing is certain, though: the government has sent a strong signal that it is willing to listen to public concerns and adjust its policies accordingly.
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