The Minister of Finance, Mr Wale Edun, has clarified that there are no immediate plans to implement the proposed 5 per cent tax on petroleum products, backing up an initial assertion by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele.
Speaking to reporters in Abuja on Tuesday, the Minister explained that although the policy was included in the new tax administration set to take effect on January 1, 2026, its implementation will not proceed without following all formal processes involved.
His explanations follow growing concerns regarding the implementation of the 5 per cent fuel tax.
Mr Edun clarified that the surcharge is a long-standing provision, originally introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and is not a new tax introduced by President Bola Tinubu’s administration.
The Minister further explained that the inclusion of the surcharge in the 2025 Act is aimed at consolidating and harmonizing existing laws for greater clarity and easier compliance.
“The tax reform bills and the tax act would not become operational until January 1, 2026, and the 5 per cent fuel surcharge which is mentioned therein will not automatically come into effect. There is even a process.
“Before any surcharge can come into effect it requires the commencement order from the Minister of Finance and this indeed must be published in a gazette, so it is not automatic that we will wake up on January 1 and there is a new tax.
“There is a whole formal process involved and as at today no order has been issued, no is being prepared and there is no immediate plan to implement any surcharge,” he stated.
Earlier, Mr Oyedele, during an interview on Channels Television on Tuesday morning, said there was no regulation that says the surcharge would be imposed from January.
“The decision was made to put this in the new law and to put a commencement date that is going to be in the future, based on an order to be gazetted by the minister. So, nobody will just spontaneously introduce the tax and create problems for the system.
“There is nothing that says this tax will start 1st January 2026. People need to get that right,” he disclosed.
The development has led to outrage from many quarters, lamenting the high cost of living in the country. The Trade Union Congress (TUC) also threatened to strike if the decision is not reversed.