The Nigerian government will introduce a new tax on petrol consumption starting in January 2026. Under the new law, Nigerians will pay a 5% tax, which amounts to N500 on every N10,000 they spend on petrol. The levy is designed to discourage fossil fuel use and push citizens toward cleaner energy.
Key Points:
A new 5% tax, amounting to N500 on every N10,000 spent on petrol, will begin in January 2026.
The new tax aims to discourage fossil fuel use and boost cleaner energy adoption.
It will be collected at the point of purchase.
The tax exempts clean energy sources, kerosene, cooking gas, and Compressed Natural Gas (CNG).
Analysts fear the new levy will worsen inflation as transport costs rise.
The government expects the revenue to fund climate change projects.
Critics argue the flat rate disproportionately affects the poor.
The new tax is a significant step towards addressing climate change and reducing Nigeria’s dependence on fossil fuels. However, analysts are concerned that the policy will place a disproportionate economic burden on everyday citizens already struggling with high costs..Check The, Full Story Here Now
Sources: Vanguard Newspaper