The Federal Government has clarified that the 5% fuel surcharge included in the recently signed Nigeria Tax Administration Act 2025 is not a new tax and will not be automatically implemented in 2026.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, explained during a press briefing in Abuja that the surcharge was first introduced in 2007 under the Federal Roads Maintenance Agency (FERMA) Act as a user charge to fund road maintenance. Its inclusion in the 2025 Tax Administration Act is aimed at harmonizing existing provisions for clarity and transparency.
Minister Edun emphasized that the surcharge will not take effect automatically with the new tax laws. Its implementation requires a formal commencement order from the Finance Minister, which has not been issued, and there are no immediate plans to implement the surcharge.
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, reiterated that the surcharge is a long-standing provision and that its inclusion in the new act is part of efforts to modernize and streamline Nigeria’s tax system.
The government reassures the public that any fiscal measures will be implemented carefully to avoid placing undue burden on Nigerians.
Federal Government Clarifies 5% Fuel Surcharge in 2025 Tax Act
