“There’s No Immediate Plans To Implement 5% Fuel Tax” – Wale Edun To Nigerians

Wale Edun

This government is fully aware of the economic pressures of the time and will not make decisions that will make things even more burdensome.

The Federal Government has no immediate plans to implement the 5 percent fuel surcharge contained in the newly signed Tax Administration Act 2025.

FG recently revealed that the surcharge is not a new tax measure created by President Bola Tinubu’s government.

Speaking at a news conference in Abuja, the Minister of Finance and Coordinating Minister of the economy, Mr Wale Edun, said that the surcharge has been a long-standing provision first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act.

According to him, adding the surcharge to the 2025 Act is part of the FG’s efforts to consolidate and harmonise existing laws for clarity and seamless compliance.

He stated that including the surcharge in the 2025 Nigeria Tax Administration Act does not automatically translate to the definite introduction of a new tax.

“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,” he said.

Confirming that the new law would not take effect until January 1, 2026, Edun noted that any potential implementation would require a formal commencement order by the Minister of Finance, published in an official gazette.

He concluded by saying that the government’s broader tax reform effort is a long-overdue overhaul of Nigeria’s fragmented tax system.

“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.

This is a transformational legal document.

This government is fully aware of the economic pressures of the time and will not take decisions that will make things even more burdensome.

Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs.

As you know with all policies, once the policy is passed into law, the next step is implementation.

There will be publicity, sensitisation, education and information on the new tax law,” he added.