Olayiwola Matthew
The Federal Government says it has no immediate plans to enforce the 5 percent fuel surcharge included in the recently signed Tax Administration Act 2025.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, made the clarification on Tuesday during a news conference in Abuja following concerns raised by labour groups and the public.
On September 7, the Trade Union Congress (TUC) rejected the proposal, describing it as “economic wickedness” against already struggling Nigerians.
Edun explained that the surcharge was not a new tax introduced by the Bola Tinubu administration but a long-standing provision first introduced under the Federal Road Maintenance Agency (FERMA) Act of 2007. Its inclusion in the 2025 Act, he said, was aimed at consolidating existing laws for clarity and compliance.
“The inclusion of the surcharge in the 2025 Nigeria Tax Administration Act does not mean an automatic introduction of a new tax,” Edun said. “There is a formal process involved. As of today, no commencement order has been issued, none is being prepared, and there is no plan to implement it immediately.”
The minister noted that the law would not take effect until January 1, 2026, and even then, implementation would require an official gazette from the Ministry of Finance.
Edun added that the broader tax reform effort seeks to modernise Nigeria’s fragmented tax system, block leakages, improve efficiency, and foster investor confidence — not to increase burdens on citizens.
“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 assured.
The minister also stressed that moving from legislation to implementation would require significant preparation, including institutional realignment, capacity building, and nationwide public sensitisation.