Nigerian E-Hailing Drivers Condemn Federal Government’s New Fuel Tax
In a significant development impacting Nigeria’s burgeoning gig economy, app-based transporters in Edo State have voiced strong opposition to the Federal Government’s recently imposed 5% fuel tax. The Amalgamated Union of App-based Transporters of Nigeria (AUATON), representing e-hailing drivers across the state, has labelled this new levy on petroleum products, including PMS and diesel, as both alarming and unacceptable. This condemnation, issued through a strongly worded statement by AUATON’s State Chairman, Comrade Russell Eghaghe, highlights growing concerns over the sustainability of their operations and the broader economic implications for citizens.
Unacceptable Burden on E-Hailing Operations and Citizens
Comrade Eghaghe articulated the union’s dismay, pointing out that the continuous rise in fuel prices over the years has already presented immense challenges for app-based drivers. Adding a 5% tax on an already exorbitant essential commodity, crucial for the daily functioning of e-hailing services, is seen as a direct path to condemning the public to financial hardship. He stressed, “The proposed tax levy on petrol and fuel is both alarming and unacceptable, particularly in light of the recent price hikes we are all experiencing.” Eghaghe also expressed bewilderment that the government would consider additional taxes on fuel and Compressed Natural Gas (CNG), especially given that CNG is often marketed as a waste product. This measure, according to AUATON, will severely impact the operational costs for drivers, leading to higher fares for commuters and reduced income for those relying on the e-hailing sector for their livelihood across Edo State.
The strong stance taken by e-hailing drivers in Edo State underscores the precarious economic situation faced by many in Nigeria’s gig economy. This new fuel tax, according to AUATON, not only threatens the viability of app-based transportation services but also risks pushing countless citizens into deeper economic distress. As the nation grapples with inflationary pressures, the call from AUATON serves as a critical warning about policies that further burden essential service providers and, by extension, the everyday consumer.
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