Nigerians To Pay N500 Tax On Every N10,000 Petrol Purchase From January 2026 Under New Tinubu Law (DETAILS)

The Nigerian government will induct a new petrol consumption tax starting January 2026. Under the policy, Nigerians will pay a 5% levy — which is N500 for every N10,000 spent on petrol.

The measure is designed to discourage fossil fuel use and encourage citizens to adopt cleaner energy sources. The tax will be collected at the point of purchase and will not apply to kerosene, cooking gas, Compressed Natural Gas (CNG), or other clean energy alternatives.

Government officials say the revenue will be invested into climate change projects and renewable energy initiatives.

However, analysts warn the policy could worsen inflation, with transport costs expected to rise sharply. Critics also argue that the flat tax rate will disproportionately affect poorer households, who are already bearing the burdens of rising fuel prices.