The Federal Government has clarified public concerns regarding the 5 percent fuel surcharge referenced in the Nigeria Tax Administration Act 2025, assuring Nigerians that it is not a new tax.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, addressed journalists in Abuja on Tuesday, stressing that the surcharge predates the current administration. He explained that it was first introduced under the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007, with 40 percent of proceeds allocated to FERMA and 60 percent to State Road Maintenance Agencies.
According to him, its inclusion in the new tax administration framework is meant to harmonise existing provisions within a modernised law, not to introduce an additional levy.
Mr Edun highlighted the significance of the Nigeria Tax Administration Act 2025, signed by President Bola Ahmed Tinubu in June, describing it as the most comprehensive tax reform in the country’s history. He said the Act consolidates multiple tax laws into one transparent framework, eliminates more than 50 overlapping taxes, and modernises revenue administration to make compliance easier, boost efficiency, and encourage private investment.
The Minister added that the law will take effect from January 1, 2026, giving enough time for restructuring, capacity building, and alignment of policies. He disclosed that preparations are already underway, including harmonisation of tax processes across Ministries, Departments and Agencies, the establishment of a Tax Ombudsman framework, and consultations with states for improved revenue coordination.
“This is not just another law; it is a catalyst for growth,” he said, noting that phased implementation would ensure smooth transition while maximising benefits for Nigerians.
Reaffirming President Tinubu’s economic agenda, Edun explained that government policy remains focused on creating a stable macroeconomic environment to attract investment, drive productivity, generate jobs, and build savings for strategic investments in education, healthcare, infrastructure, and technology.
He assured that the administration is sensitive to current economic realities, emphasising that reforms are aimed at simplifying taxes, blocking leakages, and improving efficiency of revenue collection.
“Macroeconomic stability is our top priority,” Edun said, “and every decision we take is guided by the need to ease pressures on households and businesses while laying the foundation for long-term prosperity.”