The Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, has clarified that the proposed five per cent fuel surcharge will not take effect in January 2026, stressing that the levy will remain dormant until the Minister of Finance issues a formal commencement order.
Oyedele made the statement in a video released by the State House on Friday, dismissing reports that Nigerians would start paying the levy next year under the new tax law as “false and misleading.”
“What we have is a law enacted some years back with a surcharge on fuel under the FEMA Act. This provision is now incorporated into the new tax law, but it does not take effect as of January 2026,” he said. He added that the implementation date will be determined by an official directive from the Finance Minister, emphasizing that the Ministry would act responsibly in setting the timing.
According to Oyedele, the surcharge is designed to fund transport infrastructure projects, which would reduce logistics costs, ease commuting burdens, and ultimately help curb inflation for Nigerians.
The clarification comes amid growing public concern that new fuel-related taxes could worsen economic hardship under President Bola Tinubu’s administration. The levy forms part of the Nigeria Tax Administration Act, one of four tax reform bills signed into law by Tinubu on June 26, 2025.
Under the law, the surcharge applies to every supply or sale of refined fossil fuel products in Nigeria, whether locally produced or imported, with funds collected at the point of sale. Cleaner fuels such as renewable energy sources, household kerosene, cooking gas (LPG), and compressed natural gas (CNG) are exempt.
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