Nigeria to Introduce 5% Petrol Tax from January 2026

Nigeria to Introduce 5% Petrol Tax by 2026

Starting January 2026, Nigerians will pay a 5% surcharge on petrol consumption under the new Harmonized Tax Act. The policy, aimed at boosting government revenue and encouraging a shift away from fossil fuels, will add about ₦500 to every ₦10,000 spent on petrol.

The surcharge will not apply to cleaner alternatives such as renewable energy, cooking gas (LPG), kerosene, and compressed natural gas (CNG). While the government describes the move as a step toward sustainability, many Nigerians fear it could further increase transport and living costs in an already strained economy

“While the government insists the tax will encourage cleaner energy use and boost revenue, many Nigerians remain concerned about the added financial burden it may bring. The coming months will reveal how the policy shapes the nation’s economy and daily