The Presidential Fiscal Policy and Tax Reforms Committee has clarified that President Bola Tinubu did not impose the 5% fuel surcharge in Nigeria’s new tax law.
Chairman Taiwo Oyedele explained that the surcharge has existed since the Federal Roads Maintenance Agency (Amendment) Act of 2007. It was only restated in the new tax legislation to ensure uniformity and transparency.
The committee stressed that the levy will not begin automatically. It will start only when the finance minister issues an order in the Official Gazette, as outlined in Chapter 7 of the Nigeria Tax Act, 2025.
According to the committee, the surcharge applies only to chargeable fossil fuel products. It does not apply to household kerosene, cooking gas, compressed natural gas, or renewable energy sources, in line with Nigeria’s energy transition goals.
The committee emphasized that the levy funds road construction and maintenance, so they cannot abolish it. If well implemented, it will improve travel conditions, reduce logistics costs, and strengthen the wider economy.
Savings from subsidy removal support infrastructure projects but remain insufficient for Nigeria’s growing needs, the committee added. It also highlighted that Tinubu’s tax relief agenda has already suspended charges like VAT on fuel, telecom excise tax, and the cybersecurity levy.
Although not for immediate implementation, the surcharge’s inclusion in the new tax laws provides a clear legal framework for future adoption when needed.
