Nigerians Kick as FG Moves to Add 5% Fuel Charge to Petrol And Diesel Despite Soaring Prices

• The Nigerians have berated a new government policy, which will require them to pay more for petrol and diesel nationwide
• The new policy, which the House of Representatives Ad Hoc Committee ordered for full implementation, is contained in the FERMA Act 2007
• However, most Nigerians, including farmers and transport operators decried the policy, describing it as punitive and anti-people

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Transporters, farmers, human rights advocates, and civil society organisations nationwide have opposed the proposed implementation of the five per cent users’ charge on petrol and diesel prices, stating that it could cause more hardship and protests nationwide.

The House of Representatives Ad Hoc Committee probing the non-remittance of the five per cent user charge on petroleum products to the Federal Roads Maintenance Agency (FERMA) called for the charge’s implementation as enshrined in the FERMA Act 2007.

What does the FERM Act say?

The Act states that five per cent of the pump price of petrol and diesel purchased by Nigerians will be added to road maintenance, with 40% remitted to FERMA and 60% to state road maintenance agencies.

The development comes amid the increasing price of petrol since President Bola Tinubu removed the subsidy on petrol in 2023.

A prior report by Legit.ng stated the Nigerian National Petroleum Company Limited (NNPC) recently increased petrol prices to N925 per litre in Lagos and N945 in Abuja and other locations, two days after raising the price to N915.

While the five per cent charge is meant to fix bad roads, Nigerians believe that the repair cost should be borne by the government and not Nigerians who are already facing high inflation.

Nigerians reject the new policy

Punch reports that the national chairman of the Joint Drivers Association, Akintade Abiodun, accused the Nigerian government of using the citizens as lab rats to test unpopular opinions.

Additionally, the national president of the All Farmers Association of Nigeria (AFAN), Kabiru Ibrahim, said the new charge will add to the cost of living crisis and lead to sharp increases in the price of agricultural products

Ibrahim warned that the policy would worsen food inflation and transport costs nationwide.

According to him, in the bid to move farm produce to locations, farmers would incur additional costs due to a hike in transportation, which will be transferred to the consumers

Petroleum Users’ Charge: CSOs react 

The Chancellor of the International Society for Justice and Human Rights (ISSJHR), Jackson Omenazu, berated the lawmakers for pursuing what he called punitive and anti-people policies.

Omenazu warned that growing public anger could spiral into street protests if authorities continue to ignore citizens’ sufferings.

Similarly, the Execuritve Director of Human Rights and Justice Group, Devison Nze, described the policy as economically reckless and ill-timed.

He asked the lawmakers to prioritise policies that support local manufacturing and reduce the cost of goods rather than adding to them.

However,  Yusuf Othman, the national president of the Nigerian Association of Road Transport Owners, subtly supported the initiative, saying that FERMA needs funds to fix roads nationwide.

He stated that this would be achieved if the funds were used judiciously and transparently.

Full list of NNPC's new petrol prices

Legit.ng earlier reported that Retail outlets under the NNPC have raised their pump prices to N945 per litre in Abuja, effective Monday, June 23, 2024.

They also adjusted their petrol prices to N915 per litre in Lagos, marking a new upward price review.

The state oil firm’s price review follows a similar increase by Africa’s largest Dangote Refinery, on Friday, June 20, 2025.

Source: Legit.ng