Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has dismissed widespread claims that the Federal Government under President Bola Ahmed Tinubu has introduced a fresh 5% surcharge on fuel.
In a statement released via his verified X (formerly Twitter) handle, Oyedele explained that the provision for a fuel surcharge is not new but has existed since the Federal Roads Maintenance Agency (Amendment) Act of 2007. According to him, its inclusion in the recently passed Nigeria Tax Act, 2025, was merely for “harmonisation and transparency,” not for immediate implementation.
He stressed that the surcharge would not automatically take effect when the new tax laws come into force in January 2026. Instead, implementation will only begin if and when the Minister of Finance issues an order through the Official Gazette. This safeguard, he said, allows for careful assessment of economic conditions before any commencement.
Oyedele further clarified that the surcharge would not apply to all energy products. Household kerosene, cooking gas (LPG), compressed natural gas (CNG), and renewable energy products are exempt in line with Nigeria’s energy transition goals.
On why the surcharge exists despite current economic hardship, Oyedele noted that it was designed to provide a dedicated fund for road infrastructure and maintenance, a practice adopted in over 150 countries. He argued that when effectively managed, such funds would improve road conditions, cut travel and logistics costs, and enhance overall economic efficiency.
Addressing calls for savings from fuel subsidy removal to be channelled to road projects, Oyedele maintained that while subsidy savings contribute to national funding, they are insufficient to meet Nigeria’s vast road infrastructure needs. A dedicated fund, he said, ensures consistent financing and prevents roads from being underfunded.
He also highlighted that the broader tax reforms under Tinubu’s administration have eased the burden on households and small businesses by scrapping or suspending several charges, including VAT on fuel, excise tax on telecom services, and the cybersecurity levy.
Oyedele concluded by noting that the surcharge has been formally removed from the FERMA Act and integrated into the new tax framework to provide clarity and future readiness. “It is not about immediate implementation but ensuring Nigeria has a sustainable legal foundation for road financing and related infrastructure challenges,” he stated.
