No immediate plan to implement 5% fuel tax —Edun

•Oyedele defends 5% substance surcharge, says not to load Nigerians

•FG gazettes taxation betterment laws, implementation to statesman January 2026

By Emma Ujah, Abuja Bureau Chief

The Federal Government has nary contiguous program to instrumentality the 5 percent Petroleum Products Tax arsenic contained successful the Tax Administration Act, 2025.  

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stated this astatine a property briefing successful Abuja, yesterday.

The taxation has generated wide-spread choler among Nigerians, with organised labour giving the authorities an eventual to measurement it down oregon look an concern action.  

Meanwhile, the Chairman of the Presidential Committee connected Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the projected substance surcharge is intended to make a dedicated money for Nigeria’s deteriorating roads, not to adhd other strain connected households.

However, Edun described the surcharge arsenic a long-standing proviso introduced nether the Federal Road Maintenance Agency (FERMA) Act 2007 and not a caller taxation measurement created by the Tinubu administration.

His words,  “It is important to marque this distinction. The inclusion of the surcharge successful the 2025 Nigeria Tax Administration Act does not mean an automatic instauration of caller tax. It doesn’t mean caller taxation automatically.

“There is simply a full ceremonial process involved, and arsenic of today, nary bid has been issued, nary is being prepared and determination is nary plan. There is nary contiguous program to instrumentality immoderate surcharge.

“This authorities is afloat alert of the economical pressures of the clip and volition not instrumentality decisions that volition marque things adjacent much burdensome. 

“Our precedence is to fortify taxation governance, artifact gross leakages, and amended ratio alternatively than conscionable levy caller taxes, charges, and costs.” 

The substance taxation was designed to concern roadworthy attraction and meant to beryllium shared betwixt the national authorities and states connected a 40%/60% basis. 

Mr. Edun allayed fears that the caller taxation laws which implementation has been scheduled to commence connected January 1, 2026 would summation the suffering of Nigerians.

Increases successful petroleum products prices usually trigger heightened ostentation successful the state which was the  ground of the wide disapproval of the tax.

FG defends 5% substance surcharge, says not to load Nigerians

Commenting connected the 5% substance surcharge, Oyedele, said the projected substance surcharge is intended to make a dedicated money for Nigeria’s deteriorating roads, not to adhd other strain connected households. 

He acknowledged nationalist worries that caller taxation reforms could worsen ostentation but argued that improved roadworthy infrastructure is indispensable to lowering the outgo of moving goods and people. He clarified this portion speaking connected Channels Television’s Morning Brief connected Tuesday.

5% substance surcharge  is 1 of the taxes nether the precocious enacted Nigeria Tax Act, 2025, and is projected to instrumentality effect successful January 2026.

However, it has sparked anxiousness astir imaginable inflation. The Trade Union Congress has threatened to telephone a nationwide onslaught wrong 2 weeks if the Federal government  fails to  scrap the tax. “I cognize everybody is acrophobic astir the interaction connected inflation, I’m acrophobic myself,” helium admitted.

“But we besides cognize that astir the world, roadworthy infrastructure is precise important. Nigeria has astir 200,000 kilometres of road, and lone astir 60,000 are okay. This is the large crushed wherefore transporting thing successful Nigeria, whether goods oregon people, is costly and unsafe.”

Oyedele linked the mediocre authorities of roads straight to inflation, noting a yawning spread betwixt agrarian and municipality nutrient prices.

“If you look astatine the agrarian ostentation of nutrient and comparison it with the ostentation of nutrient successful municipality centres, sometimes the quality is arsenic precocious arsenic 5%. In astir countries, that spread would beryllium nether 1%. The bulk of the issues are to bash with the authorities of the roadworthy and the aggregate taxes being collected whenever you determination goods around.”

He dispelled the conception that the surcharge is unnecessary aft the subsidy was removed, stating that the taxation w...