Finance Minister Wale Edun has stated that there are no immediate plans to implement the proposed 5 per cent tax on petroleum products.
Speaking on Tuesday in Abuja while addressing newsmen, Edun explained that although the policy is 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.
The minister’s explanations follow growing concerns regarding the implementation of the 5 per cent fuel tax.
Addressing the tax, 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 that President Bola Tinubu’s administration introduced.
The minister further explained that including the surcharge in the 2025 Act is aimed at consolidating and harmonising existing laws for greater clarity and easier compliance.
He said, “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 honourable 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.”
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