The Federal Ministry of Finance has moved to put to rest public fears over the 5% fuel surcharge, clarifying that it is not a new tax and will not be implemented immediately. In a press statement on Wednesday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, reaffirmed the government’s commitment to macroeconomic stability and transparent fiscal management.
Edun explained that the fuel surcharge, which has caused recent public concern, is a long-standing provision that predates the current administration, having been introduced in the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007. Its inclusion in the new Nigeria Tax Administration Act, 2025, is part of a comprehensive effort to harmonize existing tax laws.
“This is not just another law; it is a catalyst for growth,” Edun stated, highlighting the transformative nature of the new legislation.
He explained that the Act, signed by President Bola Ahmed Tinubu in June 2025, consolidates multiple tax laws into a single, transparent framework and is designed to simplify compliance and attract private investment.
The Minister also stressed that the government is taking a phased approach to implementation. “The Act will not become operational until 1st January 2026, providing ample time for institutional restructuring, capacity building, and policy alignment to ensure smooth implementation.” reassuring citizens that the government is sensitive to current economic conditions.
“Our reforms are designed to simplify taxes, strengthen compliance, and create an economy that works for everyone,” Edun said. “Macroeconomic stability is our top priority, and every policy decision we make is guided by the need to ease pressures on households and businesses while laying the foundations for long-term prosperity.”
