NIGERIANS TO PAY 5% FUELTAX FROM JANUARY 2026

NIGERIANS TO PAY 5% FUELTAX FROM JANUARY 2026

The Federal Government has announced that beginning January 1, 2026, a 5% consumption tax will be applied to petrol, diesel, and aviation fuel.

According to officials, the new levy is expected to generate nearly ₦800 billion annually, providing an additional revenue stream for the country and encouraging a gradual shift toward cleaner energy sources.

However, analysts warn that the measure could increase pump prices by ₦50–₦75 per litre, potentially driving up transportation costs, food prices, and overall inflation. Small businesses and low-income households are expected to feel the greatest impact.

Exemptions have been made for cooking gas (LPG), kerosene, and compressed natural gas (CNG)in order to protect households and promote alternative energy use.

The government has emphasized that the surcharge is part of wider tax reforms aimed at reducing dependence on borrowing and strengthening fiscal stability.