From Adanna Nnamani, Abuja
The Federal Government has clarified that the controversial 5 per cent fuel surcharge contained in the newly signed Nigerian Tax Administration Act 2025 is not a new levy and will not take effect automatically in 2026.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who addressed journalists in Abuja on Tuesday, explained that the surcharge was first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act as a user charge to finance road maintenance and development.
He said the provision was only restated in the 2025 Tax Administration Act to harmonise and streamline Nigeria’s tax laws for clarity and ease of compliance, not to impose a fresh tax burden on citizens.
“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.
“The 5% surcharge has existed since 2007. Its inclusion in the new law is merely for harmonisation and transparency. There is no immediate plan to implement any surcharge, and as of today, no commencement order has been issued or is being prepared,” he said.
Edun stressed that before any such charge can come into effect, a commencement order must be issued by the Minister of Finance and published in the government gazette.
The Minister assured Nigerians that the government was mindful of current economic pressures and would not introduce measures that would worsen the burden on households and businesses.
“Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency, rather than just levy new taxes, charges, and costs,” he said.
He added that the broader reform was aimed at simplifying compliance, eliminating overlapping taxes, and creating a more transparent tax environment attractive to investors.
The clarification comes amid growing backlash over the provision, with the Trade Union Congress (TUC) recently threatening nationwide strike action in protest against the 5 per cent charge.
Edun maintained that the new tax reform law, which consolidates four major bills, would only become operational from January 1, 2026, after wide consultations, sensitisation, and technical preparations.
According to him, “The reforms are deliberate, evidence-driven, and phased. We will not wake up on January 1 and impose new taxes. Nigerians will be adequately sensitised, and guidelines will be issued before implementation.”
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