By ABDULKABIR MUHAMMED

The Foundation for Environmental Rights, Advocacy, and Development (FENRAD Nigeria) has criticized the proposed 5% surcharge on petrol and diesel products by the federal government of Nigeria, arguing that it adversely affects the poor who are still struggling with economic difficulties caused by the removal of fuel subsidy. In a statement signed by its Executive Director, Comrade Nelson Nnanna Nwafor, and dated 5 September 2025, FENRAD describes the policy as “tone-deaf” and disconnected from the economic realities faced by ordinary Nigerians. This reaction comes amidst recent debate on the Nigeria Tax Administrative Act signed by President Bola Ahmed Tinubu on 26 June 2023, which states that the 5% surcharge on petrol and diesel is set to take effect from January 2026.

“The Foundation for Environmental Rights, Advocacy and Development (FENRAD Nigeria) unequivocally condemns the proposed 5% surcharge on petroleum and diesel products, a policy currently under consideration by the Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This move, FENRAD believes, is not only ill-timed but also anti-people, economically destabilizing, and unjustifiably harsh on already burdened Nigerian citizens.

“This surcharge comes in the wake of the fuel subsidy removal, a policy that has drastically increased the cost of living across the nation and disproportionately impacted low-income earners, the working class, and vulnerable populations. The introduction of a new surcharge—without any significant cushioning measures in place—will further exacerbate the hardship faced by millions.”

It further contended:

“FENRAD Nigeria views this policy direction as tone-deaf and disconnected from the current socio-economic realities on ground. At a time when inflation is at an all-time high, food prices are skyrocketing, public transportation has become unaffordable for many, and small businesses are shutting down due to rising energy costs, it is unconscionable for the government to consider further compounding the burden on the people with a regressive surcharge.”

Although, the President Bola Ahmed Tinubu-led administration has prioritized taxation, arguing it was necessary to reduce dependency on oil and promote a diversified economy. However, FENRAD has argued that a 5% surcharge on petrol and diesel would further worsen the hardship faced by the masses due to the removal of fuel subsidy. They also contended that such a policy could lead to economic instability and undermine trust in government reforms.

“The surcharge is punitive – Rather than alleviating hardship, it adds another layer of suffering to citizens already grappling with the ripple effects of subsidy removal.

“It threatens economic stability – By increasing operational costs, this surcharge will negatively impact small and medium-scale enterprises (SMEs), which are the backbone of Nigeria’s economy.

“It undermines trust in government reforms – Piling on more levies after a subsidy removal erodes public confidence in economic policies and reforms meant to stabilize the economy.

The rights group has urged the federal government to retract the proposed bill and focus on pro-citizens reforms and economic growth. They have also sought the support of the national assembly and civic organizations in resisting the Act.

Its words: “FENRAD Nigeria urges the Federal Government to halt the consideration and implementation of this surcharge and instead focus on delivering promised palliatives, instituting pro-poor reforms, and stimulating economic growth through targeted investments in renewable energy, public transportation, and job creation.

“We call on the National Assembly, civil society actors, labour unions, and the general public to resist this proposed surcharge in the interest of social justice and economic stability.”