Tinubu’s New Fuel Levy Raises Questions on Past Opposition to Obasanjo

Tinubu’s New Fuel Levy Raises Questions on Past Opposition to Obasanjo

 

 

President Bola Tinubu’s introduction of a 5 per cent fuel surcharge has reignited debate over his position on fuel taxation, with critics pointing to a sharp contrast with his stance in 2003.

 

Journalist Rufai Oseni highlighted the perceived inconsistency on his verified X handle on Friday.

 

“The same President Tinubu that said he will challenge the legality of fuel tax under Obasanjo now wants to give us fuel tax in Nigeria!” Oseni tweeted.

 

 

 

Records show that as Lagos State Governor in 2003, Tinubu opposed a proposed fuel tax under then-President Olusegun Obasanjo, which sought to raise petrol prices from ₦26 to ₦40 per litre following subsidy reductions. Tinubu described the policy as an undue financial burden on Nigerians, particularly in Lagos, where he had implemented a state consumption tax.

 

While no court case directly challenged the 2003 fuel tax, Tinubu’s opposition aligned with his broader resistance to federal policies, including a successful Supreme Court challenge over withheld local government funds. The subsidy cuts at the time sparked nationwide protests led by the Nigeria Labour Congress.

 

Fast forward to June 26, 2025, when Tinubu signed four tax reform bills into law, including the Nigeria Tax Administration Act. The legislation introduced a 5 per cent surcharge on refined fossil fuels, including petrol, diesel, and aviation fuel. The levy excludes household kerosene, cooking gas, and compressed natural gas, and is aimed at funding clean energy and transport infrastructure, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.

 

With petrol prices averaging ₦950 per litre, the surcharge could add roughly ₦45 per litre, intensifying the financial burden on Nigerians already contending with a 382 per cent increase in fuel costs since the 2023 subsidy removal.

 

The policy has drawn criticism from opposition figures and civil society. Peter Obi, Labour Party’s 2023 presidential candidate, described the surcharge as a “cruel burden” on citizens, questioning the government’s priorities. Bolaji Abdullahi of the African Democratic Congress called it “deeply insensitive,” citing a ₦21.22 trillion budget shortfall and rising national debt projected to exceed ₦150 trillion in 2025. Salihu Danlami of the Centre for Anti-Corruption and Open Leadership added, “While clean energy is a worthy goal, burdening poor Nigerians with the cost of the transition is unjust.”