Wale Edun, minister of finance and coordinating minister of the economy on Tuesday, moved to quell public concern over the controversial 5% fuel surcharge contained in the newly signed Tax Administration Act 2025, saying the federal government has “no immediate plans” to implement the charge.
Speaking at a press conference in Abuja, Edun described the surcharge as a long-standing provision first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and not a new tax measure created by the Tinubu administration.
According to him, the surcharge’s inclusion in the 2025 Act is part of efforts to consolidate and harmonise existing laws for clarity and ease of compliance.
“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. It doesn’t mean fresh taxation automatically,” Edun said.
The fuel surcharge, which sparked criticism from labour unions and civil society groups recently, was originally designed to fund road maintenance, with 40% of proceeds allocated to FERMA and 60% to state-level equivalents.
However, the recent mention of the levy in the consolidated Tax Administration Act raised fears that Nigerians would face an additional burden on fuel costs starting in 2026.
Edun clarified that the new law will not take effect until January 1, 2026, and even then, any implementation of the surcharge would require a formal commencement order by the minister of finance, published in an official gazette.
“There is a whole formal process involved, and as of today, no order has been issued, none is being prepared and there is no plan. There is no immediate plan to implement any surcharge,” he stressed.
The Minister used the opportunity to justify government’s broader tax reform effort, noting it as a long-overdue overhaul of Nigeria’s fragmented tax system.
He said the Tax Administration Act is one of four legislative instruments passed to improve transparency, simplify compliance for individuals and businesses, and modernise revenue collection.
Credit: businessday.ng
