The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said the Federal Government will introduce taxes on petroleum products when economic conditions improve and Nigerians’ incomes can accommodate the additional financial burden.

Oyedele stated this during an interview on the sidelines of the 2026 annual meetings of the International Monetary Fund (IMF) and World Bank Group in Bangkok, Thailand.

He explained that the government’s immediate priority was to complete ongoing economic reforms, stabilise the economy and restore growth before implementing the proposed fuel taxes.

According to the minister, introducing additional taxes shortly after the removal of petrol subsidies would place further pressure on households already struggling with rising living costs.

He described such a move at the present stage as insensitive, arguing that the government needed to allow the benefits of economic reforms to take hold before imposing further costs on consumers.

Oyedele noted that fuel taxes account for a substantial share of petroleum prices in many countries, including several African nations where multiple levies are imposed on fuel products.

However, he maintained that Nigeria must first strengthen its economy and improve household purchasing power before adopting a similar approach.

The minister said economic prosperity should be measured not simply by the prices of goods and services, but by the ability of citizens to earn enough to afford them.

He argued that efforts should focus on growing incomes faster than prices increase, expanding the middle class and creating conditions that support sustainable economic growth, rather than relying on price suppression.

Oyedele said revenue from the proposed fuel taxes would be dedicated to road infrastructure and the development of strategic fuel reserves.

He explained that the reserves could help the government respond to future disruptions in petroleum supply and moderate price volatility.

The proposed arrangement would also provide room for temporary tax waivers during periods of market disruption, allowing the government to manage supply pressures and replenish reserves when necessary.

Oyedele stressed that the government would follow the legally prescribed process before introducing any fuel tax. He said the relevant tax order would have to be published in the official gazette by the Minister of Finance before taking effect.

He added that the government had no intention of introducing the taxes secretly, insisting that Nigerians should understand the reasons for the policy and the benefits expected from the revenue generated.

The minister’s position comes amid continued public concern over high petrol prices following the removal of the fuel subsidy in 2023. The government has maintained that its economic reforms are intended to restore stability, encourage investment and support long-term growth.