The Federal Government has announced that it has no immediate plans to enforce the controversial five per cent Petroleum Products Tax contained in the recently enacted tax legislation.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Tuesday during a press briefing in Abuja, saying government is aware of the public outcry and is adopting a cautious approach.
“The five per cent Petroleum Products Tax is contained in the legislation, but there is no immediate plan for its implementation,” Edun said. “Government is mindful of the concerns expressed by Nigerians, and our priority remains to ease the cost of living burden on households and businesses.”
The proposed tax, if implemented, would apply to the sale of petroleum products, potentially driving up the cost of fuel and related goods. Its inclusion in the new law has already triggered strong reactions from labour unions, civil society groups, and ordinary citizens who fear it will further worsen inflation and erode purchasing power.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have described the tax as “anti-people” and “ill-timed,” warning that it would impose additional hardship on citizens already grappling with the removal of fuel subsidy and rising energy costs. Last week, the unions issued a 14-day ultimatum to the government to suspend the tax provision or face nationwide industrial action.
Civil society organisations have also joined the call for withdrawal, insisting that the tax contradicts the government’s pledge to cushion the effects of subsidy removal and other ongoing economic reforms.
Policy analysts note that the tax, though designed to raise revenue for infrastructure and social services, could undermine the government’s own efforts at stabilising the economy if implemented hastily.
“Introducing an additional petroleum tax at a time of double-digit inflation and weak consumer purchasing power may be counterproductive,” said Dr. Uche Igwe, a public policy expert. “It risks sparking social unrest and eroding public trust in ongoing reforms.”
Tuesday’s clarification by the Finance Minister appears aimed at calming public tension and buying time for wider consultations. However, questions remain over whether the government intends to shelve the tax entirely or only delay its enforcement.
For now, organised labour has not withdrawn its ultimatum, saying only a clear and formal removal of the tax provision would prevent strike action. The coming weeks may prove decisive in determining whether the matter becomes another flashpoint in the government’s economic reform agenda.
