No Immediate Plan To Implement 5% Fuel Tax- Edun
The Federal Government has no immediate plan to implement the 5 per cent Petroleum Products Tax as contained in the Tax Administration Act, 2025.
The tax has generated wide-spread anger among Nigerians, with organised labour giving the government an ultimate to step it down or face an industrial action.
Meanwhile, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the proposed fuel surcharge is intended to generate a dedicated fund for Nigeria’s deteriorating roads, not to add extra strain on households.
However, Edun described the surcharge as a long-standing provision introduced under the Federal Road Maintenance Agency (FERMA) Act 2007 and not a new tax measure created by the Tinubu administration.
His words, “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.
“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.
“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.”
The fuel tax was designed to finance road maintenance and meant to be shared between the federal government and states on a 40%/60% basis.
Mr. Edun allayed fears that the new tax laws which implementation has been scheduled to commence on January 1, 2026 would increase the suffering of Nigerians.
Increases in petroleum products prices usually trigger heightened inflation in the country which was the basis of the widespread criticism of the tax.
