Prominent human rights lawyer Femi Falana is strongly opposing the federal government’s plan to impose a new 5% fuel surcharge, arguing that Nigerians should not be burdened with fresh taxes when the state itself has failed to account for existing funds.
Speaking on the program Sunday Politics, Falana stated that the government must first pay the over one trillion naira it owes the Federal Roads Maintenance Agency (FERMA). “It is the Federal Government that is owing, not the Nigerian people,” he said.
Falana’s criticism stems from a long-standing issue of financial mismanagement. He explained that a 2007 law created a 5% user charge on fuel sales to fund road maintenance, with 40% designated for federal roads and 60% for state roads. However, according to Falana, the government never implemented this provision.
He recalled that in 2011, FERMA confirmed that despite the deductions being made at the pump, it had not received a single naira from the government. The lawyer added that by 2022, the Senate Committee on FERMA confirmed the government’s debt to the agency had grown to an estimated one trillion naira.
Falana argued that introducing a new surcharge would be a form of multiple taxation, placing an unfair burden on citizens already struggling with economic hardship. He stressed that authorities must first explain what happened to the earlier deductions before demanding more.
Falana also cautioned the government against a complete removal of all subsidies, calling it “economically unrealistic and socially insensitive.” He pointed out that developed nations like the United States and the United Kingdom still subsidize key sectors like electricity, agriculture, and social services.
He criticized the influence of international lenders like the IMF and the World Bank, urging Nigeria to resist their blanket prescriptions. “You cannot devalue the naira, dollarize the economy, remove subsidies, and simultaneously raise politicians’ pay,” he said. Falana argued that government policies must be holistic and designed to protect vulnerable citizens from further economic shocks.
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