The Minister of Finance,,Wale Edun has clarified that the proposed 5% tax policy is billed for implementation next year and not immediately.
The Minister who spoke to reporters in Abuja on Tuesday, 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.
Edun’s explanations follow growing concerns regarding the implementation of the 5 per cent fuel tax.
He 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 introduced by President Bola Tinubu’s administration.
The minister further explained that the inclusion of the surcharge in the 2025 Act is aimed at consolidating and harmonizing existing laws for greater clarity and easier compliance.
“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.”Edun said.
The proposed tax policy nearly triggered a strike by the Labour unions.On Monday, the Trade Union Congress (TUC) rejected the 5 per cent tax on petroleum products, describing it as a “reckless proposal” which is “nothing but an act of economic wickedness against already overburdened Nigerians”.
The union said that the government policy, if implemented, would compound suffering, cripple businesses, and push millions of citizens deeper into poverty.
The TUC stated that the Federal Government cannot continue to use Nigerians as sacrificial lambs for its economic experiments.
