The federal government has announced that from January 2026, Nigerians will begin paying a 5% tax on petrol consumption. This means that for every ₦10,000 spent on petrol, an extra ₦500 will be added as levy.
According to officials, the policy is aimed at discouraging the heavy use of fossil fuels while encouraging a shift toward cleaner energy sources. The levy will be collected directly at fuel stations but will not apply to kerosene, cooking gas, Compressed Natural Gas (CNG), or other renewable energy options.
Government sources explained that the funds generated will be channelled into climate change programmes and renewable energy projects. But analysts are already warning that the new tax could push inflation higher, especially with transport fares likely to rise sharply.
Critics also argue that the policy is unfair to poorer Nigerians, who will feel the impact more than wealthier households. While the government insists it is a long-term step towards energy transition, many citizens worry about the immediate strain it will place on their daily lives.
