Amid rising economic hardship, Nigerians will begin paying a new tax on petrol consumption starting January 2026 as the Federal Government commences the implementation of a 5% tax on fossil fuels.
Under the new tax regime, motorists and consumers will be charged N500 on every N10,000 spent on petrol, in line with the government’s plan to generate additional revenue and promote cleaner energy alternatives.
The policy, which takes effect in January 2026, comes at a time when many Nigerians are grappling with high living costs, fueling concerns about its possible impact on households and businesses.