FG Defends 5% Fuel Surcharge, Says Policy Not Meant to Burden Nigerians
Abuja, Nigeria – September 8, 2025
The Federal Government has defended its recent approval of a 5% fuel surcharge, insisting that the policy is not intended to impose additional hardship on Nigerians but rather to support the sustainability and safety of the downstream petroleum sector.
In a statement issued on Monday by the Ministry of Petroleum Resources, the government clarified that the surcharge would be applied at the point of distribution—not at the pump—and would primarily be borne by marketers and industry stakeholders, not end consumers.
“The 5% fuel surcharge is a regulatory levy designed to enhance monitoring, improve safety compliance, and maintain critical infrastructure within the downstream sector,” the statement read.
“It is not a tax on Nigerians, and it will not lead to an increase in the pump price of petrol or other petroleum products.”
The government’s response follows growing public concern and backlash from labour unions and civil society groups who fear the new charge may lead to a fresh round of fuel price hikes amid already difficult economic conditions.
Officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also weighed in, explaining that the surcharge is part of a broader framework to ensure efficiency and transparency in the distribution and retail of petroleum products across the country.
However, critics remain skeptical. The Nigeria Labour Congress (NLC) in a swift reaction on Monday warned that any indirect cost passed down to the masses would be resisted, calling for greater consultation before such policies are implemented.
Economists argue that while the surcharge may serve a regulatory purpose, mechanisms must be in place to prevent marketers from transferring the cost to consumers in a deregulated market.
This policy comes at a time when Nigerians are grappling with high inflation, a weakened naira, and rising costs of living, making fuel pricing a particularly sensitive issue.
The Ministry of Petroleum has promised to engage further with stakeholders and the public to ensure transparency in the rollout of the surcharge policy.
More updates to follow as the story develops.
