Beginning in January 2026, the Nigerian authorities plans to introduce a brand new petrol consumption tax, which is able to alter the best way residents pay on the pump. Below this coverage, Nigerians will now pay a 5% levy — roughly ₦500 for each ₦10,000 spent on petrol.

In response to officers, the transfer is a part of efforts to push the nation towards cleaner power options and scale back reliance on fossil fuels. Importantly, the tax won’t apply to kerosene, cooking gasoline, Compressed Pure Gasoline (CNG), or different clear power choices.

The federal government states that income from the levy shall be directed in direction of renewable power initiatives and initiatives that deal with local weather change.

However whereas the initiative feels like a win for sustainability, not everyone seems to be satisfied. Analysts warn that the tax may worsen inflation, particularly as transport prices are prone to shoot up. Critics argue that the flat charge will weigh closely on poorer households, who’re already stretched skinny by the excessive value of gas and residing bills.

For the federal government, this can be a step towards slicing fossil gas dependence. For on a regular basis Nigerians, nonetheless, the larger query stays: how rather more stress can households and companies soak up earlier than the push for greener power begins to really feel like simply one other burden?