The Federal Government has reassured Nigerians that it has no immediate plan to enforce the five per cent fuel surcharge contained in the newly signed Nigeria Tax Administration Act, 2025.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, gave the clarification on Tuesday at a press briefing in Abuja.
He explained that the surcharge is not a fresh levy created by the Tinubu administration, but an existing provision first introduced under the Federal Road Maintenance Agency (FERMA) Act of 2007. The new Act, he said, was essentially a consolidation of various laws designed to provide clarity and improve 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 a new tax. It doesn’t mean fresh taxation automatically,” Edun stated.
He further noted that the Act would not take effect until 1 January 2026, and even then, the surcharge could only apply if a commencement order is formally issued by the finance minister and published in the official gazette.
“As of today, no order has been issued, none is being prepared and there is no plan,” he stressed.
The minister described the Tax Administration Act as one of four new legislative instruments, alongside the Revenue Service Bill, the Joint Revenue Board Bill, and the overarching Tax Reform Bill, all aimed at modernising Nigeria’s tax framework, strengthening governance, and improving compliance.
“This is a transformational legal document,” he remarked, pointing out that the reforms were the outcome of years of technical work, consultation, and collaboration.
Edun assured that the administration’s focus is not to impose extra burdens on households but to boost efficiency, block leakages, and build investor confidence. “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.
He added that ongoing macroeconomic reforms were already lifting investor sentiment, referencing recent endorsements by development partners and international rating agencies. He also pledged that adequate sensitisation and public communication would precede any future implementation of the new tax framework.