The federal government says it has no immediate plans to implement the 5 percent fuel surcharge contained 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 clarification during a press briefing in Abuja on Tuesday, following public concerns about the surcharge.
On September 7, the Trade Union Congress of Nigeria (TUC) rejected the proposal, describing it as “economic wickedness” against Nigerians already facing hardship.
Addressing the issue, Edun stressed that the surcharge is not a new policy introduced by President Bola Tinubu’s administration but a long-standing provision first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act.
According to him, its inclusion in the 2025 Act is simply part of efforts to consolidate and harmonise existing tax 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.
He explained that the new law will not take effect until January 1, 2026, and even then, implementation would require a formal commencement order by the finance minister published in the 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 added.
Edun emphasised that the government’s tax reforms are designed to modernise Nigeria’s fragmented tax system, not to increase hardship.
“This government is fully aware of the economic pressures of the time and will not take decisions that will make things even more burdensome,” he said.
“Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs.”
The minister noted that the Tax Administration Act is one of four new legislative instruments aimed at improving transparency, simplifying compliance, and enhancing investor confidence.
He said the path from legislation to implementation would require significant groundwork, including institutional restructuring, capacity building, and widespread public sensitisation.
“As you know with all policies, once the policy is passed into law, the next step is implementation,” he said. “There will be publicity, sensitisation, education and information on the new tax law.”
Edun also pointed to early gains from ongoing macroeconomic reforms, citing improved investor sentiment and positive ratings from development partners and international agencies.
