The African Democratic Congress (ADC) has warned that the implementation of a 5% fuel surcharge could push petrol prices above ₦1,500 per litre, further increasing the cost of living for Nigerians.

The party raised the concern in response to comments attributed to Finance Minister Taiwo Oyedele, who reportedly indicated that the government would implement the surcharge when economic conditions improve.

The ADC’s National Publicity Secretary, Mallam Bolaji Abdullahi, alleged that the government could activate the provision after the next presidential election if President Bola Tinubu secures re-election.

According to him, the surcharge is provided for under Nigeria’s tax legislation, which President Tinubu signed into law in June 2025. He argued that the timing of its implementation could have significant consequences for households and businesses already facing economic pressures.

ADC Warns of Rising Petrol Prices and Cost of Living

The ADC estimated that if petrol sells for ₦1,450 per litre, an additional 5% surcharge passed directly to consumers would raise the pump price to ₦1,522.50 per litre.

The party warned that higher fuel prices could increase transportation costs, raise food distribution expenses, put pressure on small businesses, and further reduce household purchasing power.

The ADC also questioned the justification for the surcharge as a means of financing road infrastructure and supporting fuel-price stabilisation. It argued that Nigerians should see measurable improvements in public infrastructure before being asked to bear additional financial obligations.

The party recalled that President Tinubu had opposed a proposed fuel tax during his tenure as Lagos State governor in 2003, describing the proposal at the time as double taxation. The ADC questioned the change in position, given the economic pressures currently facing Nigerians.

ADC Advocates Production Subsidy to Reduce Fuel Costs

As an alternative, the ADC reiterated its support for the production subsidy proposed by its presidential candidate, Atiku Abubakar. The proposal focuses on supporting domestic fuel production and refining to help reduce production costs and improve affordability.

According to the party, a production-focused approach could ease fuel expenses and help reduce the wider costs associated with transportation, food distribution, and business operations.

The ADC called for policies that prioritise affordability and provide relief to households and businesses, maintaining that Nigerians need sustainable solutions to the rising cost of living.

The party urged the Federal Government to clarify its position on the surcharge and consider the potential economic consequences for citizens before proceeding with its implementation.