FG Clarifies 5% Fuel Surcharge in New Tax Law
The Federal Government has clarified that the controversial 5 per cent fuel surcharge included in the recently signed Nigerian Tax Administration Act 2025 is not a new tax and will not be automatically implemented in 2026.
Finance and Economy Minister Wale Edun told journalists in Abuja on Tuesday that the surcharge had existed since 2007 under the Federal Road Maintenance Agency (FERMA) Act as a user charge for road maintenance and development.
“The inclusion of the surcharge in the 2025 Act does not mean fresh taxation. There is no immediate plan to implement it, and no commencement order has been issued,” Edun said.
Under the original framework, 40 per cent of the surcharge proceeds were allocated to FERMA for federal road upkeep, while 60 per cent went to state road agencies. Edun said the restatement of the charge in the new law was to harmonise and streamline Nigeria’s tax system, not to impose new levies.
He stressed that implementation could only follow a formal commencement order published in the government gazette and assured that reforms were focused on strengthening tax governance, blocking leakages, and improving efficiency.
“Our priority is efficiency, not fresh charges. The phased implementation of the Act will include clear timelines and public sensitisation,” he added.
The clarification comes amid growing concerns from trade unions and the public, with groups such as the Trade Union Congress warning of possible protests over new taxes.
The Nigerian Tax Administration Act 2025, which consolidates multiple tax laws into a single framework, is scheduled to take effect on January 1, 2026, after consultations and awareness campaigns.
