
President Bola Ahmed Tinubu has clarified that the 5% fuel surcharge mentioned in the new tax laws is not a new tax introduced by his administration. The surcharge has existed since the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007 and was only restated in the new Tax Act for harmonisation and transparency.
The President explained that the surcharge will not commence automatically in January 2026 when the new tax laws take effect. It will only apply if the Minister of Finance issues an order published in the Official Gazette, ensuring that implementation is tied to economic realities.
He further assured Nigerians that essential household fuels such as kerosene, cooking gas (LPG), compressed natural gas (CNG), and renewable energy products are exempt from the surcharge. According to him, the provision is designed as a dedicated fund for road maintenance and future infrastructure needs, and not as an immediate tax burden on citizens.