The Federal Government has clarified that there is no immediate plan to enforce the 5 per cent Petroleum Products Tax included in the Nigeria Tax Administration Act, 2025.
This assurance came from the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a press briefing in Abuja yesterday.
The proposed tax has sparked widespread backlash, with organised labour issuing a warning to the government to withdraw it or face industrial action.
Meanwhile, Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, explained that the proposed surcharge is meant to create a dedicated fund for maintaining Nigeria’s deteriorating road infrastructure—not to increase the burden on citizens.
Mr. Edun noted that the surcharge is not a new tax but a long-standing provision under the Federal Road Maintenance Agency (FERMA) Act of 2007.
“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,” he said.
“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 proposed fuel surcharge, intended to finance road repairs, would be shared between the federal government and the states on a 40/60 basis.
Mr. Edun also addressed concerns that the new tax laws, which are set to take effect on January 1, 2026, would worsen economic hardship. Fuel price hikes have historically triggered inflation in Nigeria, one of the main criticisms of the surcharge.