Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, has rubbished reports that of a ₦500 fuel tax commencing from January 2026.
In a video released by The Presidency, Oyedele acknowledged that the new tax law provided for a fuel surcharge under the Federal Emergency Management Agency (FEMA) Act, but he said the provision had not yet taken effect.
“What we have is that there’s a law that was enacted some years back with a surcharge on fuel under the FERMA Act. This is a provision that is now in the new tax law, and it does not take effect as of January 2026,” he clarified.
According to Oyedele, the implementation date lay squarely with the Minister of Finance.
“I know some people have been giving wrong information about this. What is in the new tax law is that this surcharge will take effect on a date in the future, based on an order to be released by the Minister of Finance. And we do know that Mr Finance is responsible enough to determine when it’s appropriate to do so,” Oyedele said.
Oyedele spoke amid public anxiety that another round of hardship loomed with the anticipated implementation of the fuel tax under President Bola Ahmed Tinubu’s administration.
The 5 percent levy on petroleum products is domiciled in Nigeria’s laws since 2007 under the Federal Roads Maintenance Agency (FERMA) Amendment Act.
Since its legislation in 2007, it has never been enforced.
He said: “This is my most important message here, this re-enacted provision on 5 percent surcharge on fossil fuels is neither active yet nor set to become operative in January 2026, as it is being erroneously circulated in places. Its commencement is expressly conditional.
“The new law (Tax Administration Act 2025) states that the 5 percent levy shall be imposed ‘with effect from such date as the Minister may, by order published in the Gazette, appoint.’ This means the levy can only commence after the Minister of Finance conducts a review and issues a formal commencement order. To the best of my knowledge, no such order has been made or published.
“Therefore, the surcharge is not set to take effect in January 2026. Whilst the January 2026 date is the general commencement for the four tax laws, this specific 5 percent surcharge remains dormant until the required ministerial action.
“In that sense, and perhaps as it was under FERMA Act 2007, the re-enacted 5 percent surcharge appears to be a provision for future revenue prospecting, not an immediate fiscal measure.”
