FG Has no Immediate Plans to Implement 5% Fuel Tax- Edun
The Federal Government has no immediate plans to implement the five per cent fuel surcharge contained in the newly signed Tax Administration Act 2025.
Mr Wale Edun, the Minister of Finance and Coordinating Minister of the economy, said this at a news conference in Abuja on Tuesday
He said that the surcharge was a long-standing provision first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and not a new tax measure created by President Bola Tinubu administration.
According to him, the surcharge’s inclusion in the 2025 Act is part of efforts to consolidate and harmonise existing 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,” the minister said.
Edun said that the new law would not take effect until January 1, 2026, and even then, any implementation of the surcharge would require a formal commencement order by the minister of finance, published in an 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 said.
According to him, government’s broader tax reform effort is a long-overdue overhaul of the country’s fragmented tax system.
Edun said that the Tax Administration Act is one of four legislative instruments passed to improve transparency, simplify compliance for individuals and businesses, and modernise revenue collection.
He said that the other laws include the Revenue Service Bill, the Joint Revenue Board Bill, and the overarching Tax Reform Bill. “This is a transformational legal document.”
Edun said that the process of preparing the reforms followed years of consultation, technical work and collaboration.
The minister said that moving from legislation to implementation would also involve significant preparation, including institutional realignment, capacity building, and public sensitisation.
Edun said that amid heightened public scrutiny and economic pressure on households, the present administration remains committed to macroeconomic stability and private-sector-led growth.
He said that the goal of the tax reforms was not to impose new burdens on Nigerians, but to create a more transparent and effective tax system that curbs leakages, boosts efficiency, and fosters 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.
“Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs,” Edun said.
The minister said that the ongoing macroeconomic reforms has begun to yield results, improving investor sentiment and recent affirmations from development partners and international rating agencies.
He said that there would be the need for proper communication and implementation of the new tax framework in the months ahead.
“As you know with all policies, once the policy is passed into law, the next step is implementation. “There will be publicity, sensitisation, education and information on the new tax law,” Edun said. #FG Has no Immediate Plans to Implement 5% Fuel Tax- Edun#
