Edo State’s e-hailing community, represented by the Amalgamated Union of App-based Transporters of Nigeria (AUATON), has openly opposed the Federal Government’s planned 5% tax on petroleum products like petrol and diesel. The drivers warn this additional cost will worsen their already strained finances.
The union’s chairman, Comrade Russell Eghaghe, described the government’s decision to impose this charge as troubling and unfair, especially given the steady rise in fuel costs over the years. He emphasized that applying a new charge on top of already inflated prices only adds to the financial hardship faced by drivers who rely heavily on fuel for their livelihood.
This new taxation measure is part of the Nigeria Tax Administrative Act, signed into law by President Bola Ahmed Tinubu in June 2023. While intended to enhance government revenue and ensure fiscal sustainability, it has raised discontent among those most affected, notably transport workers in the informal economy.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, explained that the finances generated from this policy will be funneled back into improving the country’s transport infrastructure. He stressed that this reinvestment is aimed at lowering overall transportation expenses and curbing inflationary pressures across Nigeria.
However, AUATON remains unconvinced by these assurances. According to Comrade Eghaghe, the continuous rise in living costs, compounded by the lack of regulatory oversight on goods and service pricing, places severe pressure on drivers’ earnings. He called for a collective stand among transporters to oppose the measure, urging unity and active engagement to challenge policies harmful to their welfare.
The government has clarified that the enforcement date for the tax remains undecided, pending an official announcement from Finance Minister Wale Edun. This dispels earlier rumors suggesting the fee would start in January 2026.
In the meantime, several Nigerians, including business groups and political figures, have voiced their concern. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that the charge might force some outlets to shut down operations. Peter Obi, the 2023 Labour Party presidential candidate, criticized the policy for abandoning earlier promises of subsidies on Compressed Natural Gas (CNG), ultimately increasing the burden on citizens. According to Peter Obi instead of the policies to alleviate hardship, it intensifies it and that the subsidies once promised have vanished, leaving Nigerians to shoulder even more expense.
For now, transport workers and allied groups are mobilizing to express their opposition, hoping to influence policymakers to reconsider or adjust the plan in favor of vulnerable citizens.
Why St. Clair’s Grok case threatens all AI image generators
January 19, 2026
