THE Minister of Finance and Coordinating Minister of the economy, Wale Edun, said the Federal Government had no plans to implement the five per cent fuel surcharge contained in the newly signed Tax Administration Act 2025 immediately.
He disclosed this at a news conference in Abuja on Tuesday, September 9.
Edun clarified that the surcharge was 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 President Bola Tinubu administration.
According to him, the surcharge’s inclusion in the 2025 Act was 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 a new tax. It doesn’t mean fresh taxation automatically,” he said.
Edun disclosed that the new law would not take effect until January 1, 2026, noting that 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 said.
He further said that the Tax Administration Act was one of the four legislative instruments passed to improve transparency, simplify compliance for individuals and businesses, and modernise revenue collection.
He noted that the other laws include the Revenue Service Bill, the Joint Revenue Board Bill, and the overarching Tax Reform Bill.
Edun said that the process of preparing the reforms followed years of consultation, technical work and collaboration.
He also clarified that moving from legislation to implementation would also involve significant preparation, including institutional realignment, capacity building, and public sensitisation.
He said that the goal of the tax reforms was not to impose new burdens on Nigerians but to create a more transparent and effective tax system that curbs leakages, boosts efficiency, and fosters investor confidence.
“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,” Edun said.
The minister explained that the ongoing macroeconomic reforms had begun to yield results, improve investor sentiment and affirmations from development partners and international rating agencies.
He said there would be a need for proper communication and implementation of the new tax framework in the months ahead.
“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,” Edun said.
An earlier report by The ICIR disclosed that the Trade Union Congress of Nigeria (TUC) rejected the five per cent tax on petroleum products, describing it as a “reckless proposal” which is “nothing but an act of economic wickedness against already overburdened Nigerians”.
The union said that the government policy, if implemented, would compound suffering, cripple businesses, and push millions of citizens deeper into poverty.
It stated that the Federal Government could not continue to use Nigerians as sacrificial lambs for its “economic experiments”.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.