No Plan To Implement 5% Fuel Surcharge Next Year – Finance Minister

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has clarified that the arguable 5 per cent substance surcharge, often described arsenic a substance tax, volition not beryllium implemented instantly and is not a caller levy arsenic wide speculated.

Speaking astatine a property league successful Abuja connected Tuesday, Edun said the proviso was lone restated successful the Nigerian Tax Administration Act 2025, signed into instrumentality earlier this year, and volition not instrumentality effect automatically successful January 2026 erstwhile the Act becomes operational.

“As of today, nary bid has been issued, nary is being prepared, and determination is nary plan—no contiguous plan—to instrumentality immoderate surcharge,” Edun stated. He besides failed to authorities erstwhile the substance taxation would instrumentality effect.
His remarks followed weeks of disapproval from absorption governmental parties, labour unions, and nationalist commentators who argued that the instrumentality would further load Nigerians already struggling with economical hardship.
However, the Finance Minister explained that the surcharge had existed since 2007 nether the Federal Road Maintenance Agency (FERMA) Act, wherever it was designed arsenic a idiosyncratic complaint to money roadworthy maintenance. Under that framework, 40 per cent of the proceeds went to FERMA, portion 60 per cent was shared with state-level roadworthy agencies.

“What the caller Act has done is not to make a caller tax, but to harmonise and consolidate existing provisions into a azygous transparent framework,” Edun said. “The inclusion of the surcharge successful the 2025 Act does not mean an automatic instauration of caller taxation.”

The Nigerian Tax Administration Act 2025 is portion of 4 large betterment bills that correspond the country’s astir broad taxation overhaul successful decades. The others are the Nigerian Tax Bill, the Revenue Service Bill, and the Joint Revenue Board Bill. Together, they purpose to simplify compliance, destruct overlapping taxes, and amended coordination among federal, state, and section taxation authorities.

According to Edun, the harmonisation of the surcharge is 1 of galore measures designed to modernise Nigeria’s taxation system, fortify governance, and pull concern done greater transparency.

“This is astir gathering an inclusive and increasing economy. By consolidating taxes into 1 framework, businesses and individuals volition find it easier to comply. It besides reassures investors that Nigeria is superior astir creating a just and transparent taxation environment,” helium noted.
The Minister stressed that the law’s proviso connected substance surcharge cannot travel into effect without owed process, including the issuance of a commencement bid by the Finance Minister and work successful the authoritative gazette.

Edun said the authorities would person to prosecute and consult with stakeholders, make consciousness connected the modernised strategy and erstwhile it volition beryllium implemented.

“It is not automatic that we aftermath up connected January 1 and there’s a caller taxation being levied,” Edun explained. “A full ceremonial process is involved, including wide consultation, method preparation, and nationalist sensitisation.”

He added that the authorities recognises the economical pressures faced by Nigerian households and businesses and would not present measures that worsen the existent hardship. Instead, helium said, the medication focuses connected blocking gross leakages, improving efficiency, and ensuring macroeconomic stability.

Beyond roadworthy funding, the surcharge has besides been justified connected biology grounds to gradually discourage excessive dependence connected fossil fuels portion incentivising cleaner vigor alternatives. The levy does not use to renewable vigor products, household kerosene, cooking, oregon compressed earthy gas.

“The argumentation nonsubjective aligns with planetary trends. It is astir balancing improvement needs with sustainability, portion ensuring Nigerians person entree to safe, affordable alternatives,” the Minister said.

Edun underscored the administration’s broader economical imaginativeness of creating jobs, fostering backstage sector-led growth, and gathering inclusive prosperity. He described the taxation reforms arsenic “deliberate, evidence-driven, and phased,” insisting they were designed to support citizens from excessive burdens.

“Our priorities are to fortify taxation governance and amended gross utilisation alternatively than conscionable levy caller charges,” helium said. “Government is afloat alert of the pressures of the clip and volition not instrumentality decisions that marque things much burdensome for Nigerians.”

The Finance Minister highlighted the advancement already made successful stabilising the economy, pointing to renewed capitalist assurance and affirmative signals from planetary improvement partners and standing agencies.

“It is our corporate work to construe these reforms into amended jobs, higher incomes, and improved nationalist services,&rd...