The Federal Government has dismissed fears of an imminent hike in fuel prices, clarifying that it has no immediate plans to enforce the 5 percent fuel surcharge contained in the newly signed Tax Administration Act 2025.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stated this on Tuesday in Abuja while addressing growing public concern that the surcharge would worsen the hardship already faced by Nigerians.
The assurance comes two days after the Trade Union Congress (TUC) rejected the proposal, describing it as “economic wickedness” and threatening to mobilise for a nationwide strike if the policy was enforced.
Edun explained that the surcharge is not a new initiative of the President Bola Tinubu administration but a long-standing provision introduced under the Federal Roads Maintenance Agency (FERMA) Act of 2007.
“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 clarified.
According to him, the new tax law will only take effect from January 1, 2026, and even then, the fuel surcharge would not be enforceable unless backed by a formal commencement order from the finance minister 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,” Edun stressed.
He noted that the broader tax reform exercise was not about piling new burdens on citizens but about harmonising and modernising Nigeria’s fragmented tax system to improve efficiency, curb leakages, and attract investor confidence.
The minister further disclosed that moving from legislation to implementation would involve “significant preparation,” including institutional realignment, capacity building, and extensive public sensitisation.
He assured that the Tinubu administration was conscious of the prevailing economic realities and would avoid policies capable of aggravating the hardship of households.
“Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs,” he added.
Edun described the 2025 Tax Administration Act as “a transformational legal document,” stressing that it was the outcome of years of consultation and collaboration with stakeholders, experts, and international partners.
He maintained that Nigeria’s ongoing macroeconomic reforms had already begun yielding results, with positive investor sentiment and validation from rating agencies.
“This government is fully aware of the economic pressures of the time and will not take decisions that will make things even more burdensome,” Edun assured.
The Federal Government is expected to roll out a comprehensive public enlightenment campaign on the provisions of the new tax law in the coming months.
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