Human rights lawyer, Femi Falana, has faulted the planned 5% fuel surcharge, urging the government to avoid worsening economic hardship.

The senior lawyer spoke on Channels Television’s Sunday Politics programme, insisting that Nigerians should not be asked to bear fresh taxes.

Falana said the government should first remit funds owed to the Federal Roads Maintenance Agency (FERMA), estimated at one trillion naira.

“It is the Federal Government that is owing, not the Nigerian people,” the lawyer stated during the interview.

FERMA Funds, Fuel Surcharge

Falana explained that Section 14 of the FERMA Act 2007 established a 5% user charge on fuel sales.

“The provision was clear: 40% for federal roads, 60% for state roads. Sadly, the government never implemented it,” he noted.

Falana noted that between 2007 and 2011, FERMA confirmed no funds were remitted despite deductions from fuel prices at source by regulators.

“We asked FERMA in 2011 how much was collected. They replied government never gave them a kobo,” he revealed.

Following pressure, the government released N832 million in 2011, but the larger backlog remained unpaid, Falana recalled.

By 2022, Senator Gershom Bassey, then Senate Committee Chair on FERMA, disclosed that government owed about one trillion naira.

He added that introducing a fresh surcharge could amount to multiple taxation, burdening already strained consumers.

“The money was deducted but not remitted. This new tax should first address those missing collections.

“By 2022, even the Senate confirmed that over one trillion naira was owed to FERMA,” Falana argued.

The Senior Advocate of Nigeria (SAN) urged authorities to explain why funds deducted for infrastructure vanished, stressing accountability before imposing fresh burdens.

“Before introducing new levies, the government must tell Nigerians what happened to the earlier deductions,” Falana said.

Total Subsidy Removal

Falana also warned against complete subsidy removal, describing it as economically unrealistic and socially insensitive.

“No country abolishes all subsidies. Even the US and UK subsidize electricity, agriculture, and key social services,” he said.

He criticized international lenders, stressing that Nigeria must resist IMF and World Bank prescriptions for blanket subsidy removal.

“You cannot devalue the naira, dollarize the economy, remove subsidies, and simultaneously raise politicians’ pay,” Falana cautioned.

He argued that government policies must be holistic and designed to protect vulnerable citizens from further economic shocks.

Government Clarifications

Meanwhile, Presidential Tax Committee Chair Taiwo Oyedele clarified that the 5% surcharge originated from the 2007 FERMA Act.

Finance Minister Wale Edun also confirmed no immediate plan to implement the tax despite its inclusion in the 2025 Tax Act.

Edun explained the measure aims to harmonize existing provisions and will not commence without due process and stakeholder consultation.

Labour unions, however, remain unconvinced, warning that the surcharge represents a direct pump tax and threatens fresh strikes. (Channels TV, excluding headline)