Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said the Federal Government has no immediate plans to implement the five percent fuel surcharge contained in the newly signed Tax Act 2025.
Edun spoke at a news conference in Abuja on Tuesday.
The minister’s response comes after several concerns about the implementation.
On September 7, the Trade Union Congress of Nigeria (TUC) rejected the federal government’s proposed 5 percent tax on petroleum products, describing it as “economic wickedness” against already overburdened Nigerians.
Speaking on the tax, Edun said the surcharge was a long-standing provision first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and not a new tax measure created by President Bola Tinubu administration.
According to the minister, the surcharge’s inclusion in the 2025 Act is part of efforts to consolidate and harmonise existing laws for clarity and ease of compliance.
“It is important to make this distinction, the inclusion of the surcharge in the 2025 Nigeria Tax Administration Act does not mean an automatic introduction of new tax. It doesn’t mean fresh taxation automatically,” Edun said.
The minister said the new law would not take effect until January 1, 2026, and even then, any implementation of the surcharge would require a formal commencement order by the minister of finance, published in an official gazette.
“There is a whole formal process involved, and as of today, no order has been issued, none is being prepared and there is no plan. There is no immediate plan to implement any surcharge,” he said.
Edun added that the government’s broader tax reform effort is a long-overdue overhaul of the country’s fragmented tax system.
He said that the tax administration act is one of four legislative instruments passed to improve transparency, simplify compliance for individuals and businesses, and modernise revenue collection.
“This is a transformational legal document, ” the minister said.
Edun added that the process of preparing the reforms followed years of consultation, technical work and collaboration.
