The 5% surcharge tax law on fuel is not a new tax introduced by the current administration , Taiwo Oyedele , Chairman ๐ท๐๐๐๐๐ ๐๐๐๐๐๐ ๐ญ๐๐๐๐๐ ๐ท๐๐๐๐๐ & ๐ป๐๐ ๐น๐๐๐๐๐๐ ๐ช๐๐๐๐๐๐๐๐ clarified on Saturday via his official X handle.
He said the provision already exists under theย Federal Roads Maintenance Agency (Amendment) Act, 2007, noting that its restatement in the new Tax Act is for harmonisation and transparency rather than immediate implementation.
The resurfacing of the 5% surcharge tax law on fuel attracted public discourse recently with most Nigerians condemning its introduction.
Shedding lights on the subject matter which he addressed through “frequently asked questions, Oyedele posed: Did ๐๐๐ฆ๐ข๐ง๐ข๐ฌ๐ญ๐ซ๐๐ญ๐ข๐จ๐ง ๐ข๐ง๐ญ๐ซ๐จ๐๐ฎ๐๐๐ ๐ 5% ๐ฌ๐ฎ๐ซ๐๐ก๐๐ซ๐ ๐ ๐จ๐ง ๐๐ฎ๐๐ฅ?
“No. The surcharge isย not new.ย It already exists under theย Federal Roads Maintenance Agency (Amendment) Act, 2007 (FERMA Act).ย The new Tax Act only restates it for harmonisation and transparency. Hence, it was not part of the original tax reform bills submitted by the president to the National Assembly” . ๐๐จ๐๐ฌ ๐ญ๐ก๐ข๐ฌ ๐ฆ๐๐๐ง ๐ญ๐ก๐ ๐ฌ๐ฎ๐ซ๐๐ก๐๐ซ๐ ๐ ๐ฐ๐ข๐ฅ๐ฅ ๐๐จ๐ฆ๐ฆ๐๐ง๐๐ ๐ข๐ง ๐๐๐ง๐ฎ๐๐ซ๐ฒ 2026 ๐ฐ๐ก๐๐ง ๐ญ๐ก๐ ๐ง๐๐ฐ ๐ญ๐๐ฑ ๐ฅ๐๐ฐ๐ฌ ๐ญ๐๐ค๐ ๐๐๐๐๐๐ญ?
“No. The surcharge does not take effect automatically with the new tax laws. It will only commence when the Minister of Finance issues an order published in the Official Gazette as stated under Chapter 7 of the Nigeria Tax Act, 2025. This safeguard ensures careful consideration of timing and economic conditions before implementation”, he said.
According to him, “๐๐ข๐ฅ๐ฅ ๐ญ๐ก๐ ๐ฌ๐ฎ๐ซ๐๐ก๐๐ซ๐ ๐ ๐๐ฉ๐ฉ๐ฅ๐ฒ ๐ญ๐จ ๐๐ฅ๐ฅ ๐๐ฎ๐๐ฅ ๐ฉ๐ซ๐จ๐๐ฎ๐๐ญ๐ฌ?
“No. Several energy products used by households are exempt. This includes household kerosene, cooking gas (LPG), and compressed natural gas (CNG). Clean and renewable energy products are also excluded to align with Nigeriaโs energy transition agenda”,
On why would government ๐ง๐จ๐ญ ๐๐๐จ๐ฅ๐ข๐ฌ๐ก ๐ญ๐ก๐ ๐๐ก๐๐ซ๐ ๐, ๐ ๐ข๐ฏ๐๐ง ๐ญ๐ก๐ ๐๐ฎ๐ซ๐ซ๐๐ง๐ญ ๐ก๐๐ซ๐๐ฌ๐ก๐ข๐ฉ ๐๐ง๐ ๐ญ๐ก๐ ๐ซ๐ข๐ฌ๐ค ๐จ๐ ๐ก๐ข๐ ๐ก๐๐ซ ๐ข๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง?, he affirmed that, “the surcharge is designed as aย dedicated fund for road infrastructure and maintenance.ย
“If implemented effectively, it will provide safer travel conditions, reduce travel time and cost, lower logistics costs and vehicle maintenance expenses, which will benefit the wider economy.
“This practice is virtually universal with over 150 countries imposing various charges ranging between 20% to 80% of fuel products to guarantee regular investment in road infrastructure”.
