On September 3, 2025, Peter Obi, a prominent Nigerian politician and former Anambra State Governor, voiced concerns over a new 5% tax on refined fossil fuel sales, including petrol and diesel, set to take effect from January 2026. The tax, introduced by the Federal Government, has sparked debate amid Nigeria’s ongoing economic challenges.
In a post on X, Obi questioned the timing of the tax, noting that President Tinubu recently announced the government met its 2025 revenue target of N18.32 trillion.
Here Is What He Wrote On His Official X Handle
He suggested that, with this achievement, funds could be redirected to alleviate poverty, improve education, and enhance healthcare rather than impose additional burdens on citizens already struggling with transportation costs. Obi also highlighted the rise in Compressed Natural Gas (CNG) prices from ₦230 to ₦450 per standard cubic meter, pointing out the disappearance of promised subsidies.
The tax proposal has drawn mixed reactions. Some citizens and analysts argue it could strain households further, with over 40% of Nigerians living below the poverty line, according to a 2023 World Bank report. Others see it as a necessary step to boost non-oil revenue, projected at N10.39 trillion in the 2025 budget.
The government has yet to provide a detailed response, but the issue remains a focal point of public discourse.
