Nigerian government rules out immediate implementation of 5% fuel surcharge
The federal government has said it has no immediate plans to implement the 5 per cent fuel surcharge included in the newly signed Tax Administration Act 2025.
Finance minister and coordinating minister of the economy, Wale Edun, told reporters in Abuja on Tuesday that the surcharge, first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, was not a new tax created by President Bola Tinubu’s administration.
“The inclusion of the surcharge in the 2025 Act does not mean an automatic introduction of the new tax,” he said. “As of today, no order has been issued, none is being prepared, and there is no plan.”
The minister stressed that the Act, which takes effect from January 1, 2026, would require a formal commencement order published in an official gazette before the surcharge could be applied.
His comments follow widespread concerns over the measure, with the Trade Union Congress (TUC) rejecting it on September 7, describing the surcharge on petroleum products as “economic wickedness” against struggling Nigerians.
He also explained that the Act was part of broader tax reforms aimed at consolidating laws, improving transparency, curbing leakages and modernising revenue collection. He added that implementation would require significant preparation, including institutional realignment, capacity building and public sensitisation.
“This government is fully aware of the economic pressures of the time and will not take decisions that will make things even more burdensome,” he said.
