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FG Rules Out Immediate Enforcement Of 5% Fuel Tax.
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Edun assures Nigerians reforms won’t worsen economic hardship.
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Oyedele defends surcharge as road infrastructure funding measure.
The Federal Government has assured Nigerians that there is no immediate plan to implement the 5 per cent fuel surcharge contained in the recently enacted Tax Administration Act, 2025.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, gave the clarification at a press briefing in Abuja on Tuesday.
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EKO HOT BLOG reports that he explained that while the levy was captured in the Act, its inclusion does not translate into automatic implementation.
“It is important to make this distinction. The inclusion of the surcharge in the 2025 Nigeria Tax Administration Act does not mean an automatic introduction of new tax,” Edun said. “As of today, no order has been issued and there is no plan to introduce any surcharge immediately.”
He stressed that the Tinubu administration is mindful of current economic pressures and will not adopt measures that worsen the burden on households. Instead, he said, the government is focusing on improving tax governance, blocking leakages, and enhancing efficiency rather than creating new taxes.
The proposed 5 per cent surcharge is not new, according to officials, but dates back to the Federal Road Maintenance Agency (FERMA) Act of 2007. It was designed to fund road maintenance and to be shared between the federal and state governments on a 40/60 basis.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, defended the proposal, saying its purpose is to secure a dedicated fund for Nigeria’s deteriorating roads. He noted that poor road infrastructure significantly contributes to high transportation costs and food inflation across the country.
Oyedele further explained that the surcharge would be introduced carefully, potentially at a time when exchange rate appreciation or a drop in global oil prices would cushion its effect on pump prices.
Meanwhile, the government has gazetted the new tax reform laws, with implementation scheduled to commence on January 1, 2026.
