The federal government has said it has no immediate plan to enforce the five percent fuel surcharge included in the newly signed Tax Administration Act 2025.
Gatekeepers News reports that Wale Edun, minister of finance and coordinating minister of the economy, made this known at a press conference in Abuja on Tuesday. His remarks came after public concerns followed the signing of the law.
On September 7, Trade Union Congress of Nigeria (TUC) rejected the proposed fuel surcharge, describing it as economic wickedness against already struggling Nigerians.
Edun explained that the surcharge was not a new tax from the present administration, but a long-standing provision introduced under the Federal Road Maintenance Agency (FERMA) Act in 2007. He said its inclusion in the 2025 Act was to consolidate and harmonise existing laws for clarity.
He said, “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.”
The minister added that the law would not take effect until January 1, 2026, and that even then, enforcement of the surcharge would require a commencement order from the finance minister, published in an official gazette.
He said, “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.”
Edun noted that the new tax administration law is part of a wider reform designed to fix the country’s fragmented tax system. He described the legislation as a transformational legal document aimed at transparency, ease of compliance, and modernising revenue collection.
He explained that moving from legislation to implementation would require significant preparation such as institutional restructuring, capacity building, and public sensitisation.
According to him, the Tinubu administration is mindful of the current economic hardship and will not impose measures that worsen the burden on citizens.
He said, “This government is fully aware of the economic pressures of the time and will not take decisions that will make things even more burdensome.”
Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs.”
Edun also pointed out that ongoing reforms have already started yielding positive outcomes, citing improved investor confidence and recognition from development partners and international rating agencies. He said proper communication and public education would follow before the new tax framework comes into force.
He added, “As you know with all policies, once the policy is passed into law, the next step is implementation.”
The minister noted that there will be publicity, sensitisation, education, and information on the new tax law.
