Barely 24 hours after organised Labour under the Trade Union Congress (TUC) vowed to go on strike over its 5 percent fuel tax, the Federal Government has denied any immediate plan to implement the policy.
TUC Threatens Tinubu With Nationwide Strike Over 5% Fuel Tax
The 5 percent Petroleum Products Tax is contained in the new tax legislation newly signed into law by President Bola Ahmed Tinubu.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, gave the clarification at a Press Conference in Abuja today Tuesday.
According to Edun, the Federal Government has “no immediate plans” to implement the charge.
He described the surcharge as a long-standing provision first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and not a new tax measure created by the Tinubu administration.
According to him, the surcharge’s inclusion in the 2025 Act is part of efforts to consolidate and harmonise existing laws for clarity and ease of compliance.
“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,” Edun said.
The fuel surcharge, which sparked criticism from labour unions and civil society groups recently, was originally designed to fund road maintenance, with 40% of proceeds allocated to FERMA and 60% to state-level equivalents.
However, the recent mention of the levy in the consolidated Tax Administration Act raised fears that Nigerians would face an additional burden on fuel costs starting in 2026.
Edun clarified that the new law will not take effect until January 1, 2026, and even then, any implementation of the surcharge would require a formal commencement order by the minister of finance, 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,” he stressed.
The Minister used the opportunity to justify government’s broader tax reform effort, noting it as a long-overdue overhaul of Nigeria’s fragmented tax system.
He said the Tax Administration Act constituted one of four legislative instruments passed to improve transparency, simplify compliance for individuals and businesses, and modernise revenue collection.
The other laws include the Revenue Service Bill, the Joint Revenue Board Bill, and the overarching Tax Reform Bill.
“This is a transformational legal document,” Edun said, describing the process of preparing the reforms as “deliberate, evidence-driven and phased,” following years of consultation, technical work and collaboration.
He noted that moving from legislation to implementation would also involve significant preparation, including institutional realignment, capacity building, and public sensitisation.
Amid heightened public scrutiny and economic pressure on households, Edun emphasised that President Tinubu’s administration remains committed to macroeconomic stability and private-sector-led growth.
The goal of the tax reforms, he stressed, is not to impose new burdens on Nigerians, but to create a more transparent and effective tax system that curbs leakages, boosts efficiency, and fosters investor confidence.
“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 stated.
“Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs.”
The Minister said ongoing macroeconomic reforms have already begun to yield results, pointing to improving investor sentiment and recent affirmations from development partners and international rating agencies.
He however, acknowledged the need for careful communication and implementation of the new tax framework in the months ahead.
Edun said: “There needs to be and there will be publicity, sensitisation, education and information.
“As you know, with all policies, once the policy is passed into law, the next step is implementation — robust, careful and effective implementation, timing and sequencing of the various activities.”
