Former Anambra State governor and Labour Party presidential candidate in the 2023 general elections, Peter Obi, has strongly faulted the Federal Government’s newly introduced 5% tax on all refined fossil fuel sales, including petrol and diesel.
In a statement posted on his official X handle late Wednesday, September 3, 2025, Obi argued that the policy is ill-timed and counterproductive, particularly at a period when millions of Nigerians are struggling with the high cost of living. He maintained that rather than providing relief, the government has chosen to impose an additional burden on already stretched citizens.
Obi emphasized that the administration should have waited until Nigerians began to see meaningful results from President Bola Tinubu’s numerous promises before introducing such a measure. “Nigerians will pay a 5% tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation. Mr. President just yesterday boasted that Nigeria has met its revenue target for the year. Yet instead of easing hardship, the government imposes more burden on Nigerians,” he wrote.
Fuel Tax and the Rising Cost of Alternatives
The Labour Party flagbearer also drew attention to the state of alternative energy options. He noted that Compressed Natural Gas (CNG), which was projected as a cheaper substitute, has now become unaffordable for many citizens. “Even the so-called alternative, CNG, has become unaffordable, rising from about N230 to N450, while the promised subsidies on the CNG have quietly vanished,” Obi lamented.
By highlighting the sharp rise in CNG costs, he underscored that the government’s energy policies appear inconsistent and have left Nigerians with no viable affordable option. For millions who depend on fuel and diesel daily, the new tax could worsen transport costs, food prices, and business expenses, further pushing families into poverty.
Questions on Revenue Use
Obi questioned the government’s rationale for introducing the tax despite declaring that revenue targets had already been met. “If our revenues are truly ‘excessive’ as claimed, should they not first be used to fund education, healthcare, and pulling Nigerians out of poverty? Why tax citizens who cannot even breathe anymore?” he asked.
His comments reflect wider public concerns about transparency in revenue management and whether government priorities are aligned with the immediate welfare needs of Nigerians.
Call for Compassionate Leadership
The former presidential candidate stressed that governance should be anchored on reducing suffering rather than amplifying it. He reminded leaders that the essence of public office is service and empathy. According to him, leadership should be measured by its ability to ease the burden on citizens while creating opportunities for them to thrive.
“Leadership is not about giving a burden but reducing suffering, and about care and compassion,” Obi stated, warning that policies like the fuel tax risk alienating citizens who already feel excluded from the benefits of governance.
Broader Economic Context
The introduction of the 5% fuel tax comes at a time when Nigerians are facing one of the toughest economic periods in recent history. The removal of fuel subsidies, persistent inflation, naira depreciation, and rising unemployment have combined to erode purchasing power. For many households, basic necessities such as food, transportation, healthcare, and education are becoming increasingly unaffordable.
Analysts warn that taxing fuel at this stage could further fuel inflation and limit economic growth. Transport unions have hinted that the cost of intra-city and inter-state travel may rise, while businesses that rely on diesel for operations could pass additional costs to consumers.
Obi’s intervention adds to a growing wave of public dissatisfaction with the government’s economic policies. Civil society groups and labor unions have also raised alarm over the impact of new levies and taxes on ordinary citizens. Many argue that instead of introducing additional taxes, the government should focus on reducing waste, tackling corruption, and channeling existing revenues into developmental priorities.
Conclusion
Peter Obi’s critique underscores the tension between government fiscal policies and the lived realities of ordinary Nigerians. His call for a more compassionate approach reflects a sentiment shared by many who believe that economic recovery must begin with reducing hardship for citizens rather than imposing new burdens.
The debate over the 5% fuel tax is likely to intensify in the coming weeks as Nigerians brace for its impact on daily living costs, and as policymakers weigh the balance between revenue generation and social welfare.
