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Nigerians groan over effects of 7.5% VAT on petrol prices

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Nigerians have begun to lament the effects of the introduction of a 7.5 per cent Value-Added Tax on the price of premium motor spirit, otherwise known as petrol.

This comes barely a month after President Bola Tinubu removed the subsidy on petrol during his inaugural speech on May 29, raising the price of PMS from N188 to about N580 in different states of the federation.

Recall that the Minister of Finance, Budget and National Planning, Zainab Ahmed, announced that the Finance Act 2020 raised the previous 5 per cent VAT of the country to 7.5 per cent on commodities including automobile gas oil and it was implemented on February 20, 2020.

But the VAT-exempt items include honey, bread, cereals, cooking oils, culinary herbs, fish, flour, starch, fruits, meat, poultry, milk, nuts, pulses, roots, salt, vegetables, water, sanitary pads, tampons, tertiary, secondary, primary and nursery tuition.

While other commodities have been VAT-compliant, PMS was not until recently because it was being subsidised by the Federal Government.

However, the new development has hit Nigerians hard, as many have called for an utmost review of it, especially because of the recent removal of fuel subsidies.

See reactions below:

A user, Ingawa said, “That means for every litre of AGO you will buy, you have to pay 7.5% Consumer Tax (VAT) of the Pump Price. For example; If 1 litre of AGO is N650 at the filling station, then you have to pay an additional N48.75 being payment for 7.5% VAT. The total price per litre will be N698.75 per litre.”

Another user, Angry Non-Nigerian, said, “When Tinubu said ‘widen the tax net, you people thought he was joking. The only thing that man knows is tax, tax and tax. As Lagosians.”

One Oyo said, “The Citizens will be the main IGR for this government. There is no single move to cut the cost of government from the Senate to the House to other departments. They went to education first by trying to add tuition fees, now 7.5% VAT on PMS. Everything directly to the common man.”

Akwa Ibom 1st son opined, “So after the removal of subsidy and the price of fuel jumped to 530, they’ve now decided to add 7.5%. VAT on AGO. In all of these, what are the politicians losing, and what are they sacrificing?”

“7.5% VAT on diesel after subsidy on petrol was removed? They will show you people shege banza pro max air 2. The government is after our lives bro!. 

“Even those that were shouting ‘Akanbi’ will not be left out. They might even end up being the most affected. The evil will go round. I swear!

“Good governance is not attained by wishful thoughts, things don’t work that way. Now, Tinubu is going for a check-up after ruining the economy with senseless policies.

“His supporters have been crying since last week because the pressure is going around. We must all learn a lesson,” Madu Obi wrote.

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NAF Crash: Residents Fear Disease as Body Parts Foul Community River

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Residents of Igbokoda in Ilaje Local Government Area of Ondo State are grappling with a severe public health and environmental crisis following the crash of a Nigerian Air Force (NAF) ATR-42 aircraft into a swamp near the community.

The aircraft, on a routine mission from Benin City to Lagos, crashed last Monday, killing all 25 people on board. Recovery efforts continue amid difficult swampy terrain, with large sections of the wreckage and human remains still unrecovered.

The traditional ruler of Igbokoda, Oba Afolabi Odidiomo, said residents have been battling an extremely offensive odour caused by decomposing human remains floating in the river. “The odour is extremely offensive. So many parts of the human body are floating around in the river. Some of the bodies have not been recovered. They have decomposed, and it is affecting everything,” he stated.

He warned that the river — the community’s main source of water for drinking, cooking and fishing — has been polluted by the remains and aviation fuel spillage. Residents can no longer safely use the water, raising fears of a disease outbreak.

Ondo State authorities confirmed they are assessing the environmental and public health impact, with plans for decontamination. Recovery teams, including the Navy, Air Force and emergency agencies, are intensifying efforts to retrieve remaining wreckage and remains.

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UNCTAD Warns Debt Burden Threatens Future of 3.7bn People

UN Secretary-General António Guterres said developing economies were facing mounting pressures from geopolitical tensions, conflicts, trade disruptions, climate challenges, inadequate financing and high debt-servicing costs.

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The future of 3.7 billion people is threatened by mounting government debt burdens, the United Nations Conference on Trade and Development (UNCTAD) has warned, urging developing countries to strengthen cooperation in tackling debt-related challenges.

The warning was delivered on Monday in Bangkok during the IMF–World Bank Annual Meetings, where the UN agency called on finance ministers, central bank governors and senior government officials from developing countries to unite under the Borrowers’ Platform to share knowledge, exchange experiences and coordinate their positions on debt issues.

UN Secretary-General António Guterres said developing economies were facing mounting pressures from geopolitical tensions, conflicts, trade disruptions, climate challenges, inadequate financing and high debt-servicing costs.

“Developing countries face a perfect storm with geopolitical tensions and conflicts, trade and climate pressures, a lack of adequate financing and high debt-service burdens,” Guterres said in his address to the platform’s new member states.

He added that the Borrowers’ Platform would provide members with an opportunity to navigate these challenges.

Guterres welcomed participating countries’ commitment to the initiative, stressing the importance of creating a common space where borrowers could exchange advice, share practical tools and approaches, and strengthen their collective advocacy on international debt issues.

According to UNCTAD, 31 developing countries have formally joined the platform, while several others have expressed interest in the initiative.

Since the platform’s launch in April, participating countries have operated through an interim process led by Egypt as interim chair, with UN Trade and Development serving as its secretariat.

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Nigeria, AfDB Agree Portfolio Review (Photos)

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Bangkok, 12 October 2026 – Nigeria and the African Development Bank (AfDB) have agreed to a joint technical review of the Bank’s portfolio in the country and to prepare an official visit by AfDB President Dr Sidi Ould Tah.

The agreement was reached on Monday when Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele met Ould Tah on the sidelines of the 2026 IMF and World Bank Group Annual Meetings in Bangkok.

Oyedele reaffirmed that Nigeria will remain the Bank’s largest shareholder and will meet its capital subscription obligations. He stressed that the long-standing partnership should now deliver greater development finance and tangible economic benefits.

He also expressed Nigeria’s support for the AfDB’s Four Cardinal Points agenda under Ould Tah’s leadership: bridging Africa’s financing gap, securing the continent’s financial sovereignty, harnessing its demographic dividend, and building resilient infrastructure through the local transformation of natural resources. Oyedele said the priorities align closely with Nigeria’s own development goals.

The planned portfolio review will identify implementation bottlenecks, accelerate project delivery and ensure ongoing operations are better aligned with the Federal Government’s priorities. Ould Tah’s proposed visit is expected to include meetings with President Bola Ahmed Tinubu, senior officials and other stakeholders.

The two sides also discussed the high cost of borrowing facing African countries. Oyedele noted that international credit ratings often fail to reflect improvements in economic fundamentals and reform progress, raising financing costs for nations such as Nigeria.

In response, Ould Tah said the AfDB is developing a facility to provide African governments with technical and analytical support in their dealings with credit rating agencies, helping them present credible data and challenge assessments where necessary.

Other topics included African financial integration, local-currency transactions, trade insurance and credit enhancement to lower investment risk and attract private capital. Both parties also underlined the need to retain skilled professionals on the continent.

Technical work on financing and portfolio performance will continue alongside preparations for the AfDB President’s visit to Nigeria.

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