Minister of Finance, Wale Edun
Federal Government of Nigeria has no immediate plans to enforce the 5% fuel surcharge outlined in the recently enacted Tax Administration Act 2025, according to Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Speaking at a press conference in Abuja on Tuesday, Edun clarified that the surcharge, originally introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, is not a new tax imposed by President Bola Tinubu’s administration.
“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,” Edun stated, emphasizing that the provision’s inclusion aims to streamline and clarify existing laws for better compliance.
Edun noted that the new law will not take effect until January 1, 2026, and any implementation of the surcharge would require a formal commencement order 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 assured.
The Tax Administration Act is one of four legislative measures designed to overhaul Nigeria’s fragmented tax system, alongside the Revenue Service Bill, the Joint Revenue Board Bill, and the overarching Tax Reform Bill.
Edun described these reforms as “a transformational legal document,” developed through years of consultation and collaboration to enhance transparency, simplify compliance, and modernize revenue collection.
Amid economic challenges, Edun stressed the government’s commitment to macroeconomic stability and private-sector-led growth, assuring Nigerians that the reforms aim to avoid new burdens.
“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.
“Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs.”
Edun highlighted early successes from ongoing macroeconomic reforms, including improved investor sentiment and positive feedback from development partners and international rating agencies.
He emphasized the need for robust public awareness campaigns to ensure smooth implementation.
“There will be publicity, sensitisation, education, and information on the new tax law,” he added, underscoring the government’s focus on effective communication in the months ahead.
