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ADC Chieftain Criticises Proposed 5% Fuel Surcharge, Faults Subsidy Fund Managemen



September 11, 2025  - A leading figure in the African Democratic Congress (ADC), Chille Igbawua, has strongly criticised the Federal Government’s proposed 5% fuel surcharge, describing it as an unnecessary burden on Nigerians already grappling with the effects of subsidy removal.

Speaking during a live appearance on Channels Television’s The Morning Brief, Igbawua argued that the surcharge contradicts the government’s earlier decision to eliminate fuel subsidies. “Countries that are taking this pump tax are taking it because they’re paying subsidies,” he said. “Now, if you’re not paying subsidies, why do you go back and tax again? Because you’ve already removed the subsidy. So, what’s the benefit of being a citizen in an oil-producing economy?”

The ADC chieftain expressed concern over the lack of transparency in the management of funds saved from the subsidy removal. “You remove subsidy, you have money coming in, but you’re not telling anybody what you’re doing with the money, and then you want to introduce a 5% tax on fuel at the pump,” he stated.

Since President Bola Tinubu’s inauguration in May 2023, the removal of fuel subsidies has led to a sharp increase in pump prices, with costs rising from under ₦200 per litre to nearly ₦1,000 in some regions. The government had pledged to redirect the savings towards infrastructure development, but critics like Igbawua say the impact has not been felt.

“Well, on fuel subsidy, we’ve said it has been poorly managed,” Igbawua noted. “You may not restore fuel subsidies in that manner, but you can improve the incomes of the people so that they’re able to buy the fuel.”

He proposed that improving citizens’ earnings would ease the pressure on households and reduce transport costs. “If we improve the incomes of the people, those who own vehicles can buy the fuel, those who move by public transport can pay the fares, and the fares will come down,” he explained.

Igbawua also referenced the government’s efforts to promote Compressed Natural Gas (CNG) as an alternative, but said the initiative lacked proper execution. “There have been some efforts at CNG, and we know that if that’s pursued properly, it may be a relief. It’s not being done,” he said.

Looking ahead to the 2027 elections, Igbawua affirmed that an ADC-led government would prioritise policies to cushion the effects of subsidy removal and ensure better management of public funds. “An ADC government come 2027, as we believe, is going to introduce measures that will cushion the effect of the removal of the subsidy and then manage it,” he declared.

Despite growing public outcry and opposition pressure, the Federal Government has maintained its stance against reinstating fuel subsidies.

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