Finance Minister denies immediate plans to implement 5% Fuel Tax

Finance Minister Wale Edun has assured Nigerians that there are no immediate plans to enforce the proposed 5 per cent tax on petroleum products.

Speaking to reporters in Abuja on Tuesday, Edun clarified that although the policy is included in the new tax administration framework scheduled to take effect on January 1, 2026, it will not automatically be implemented without completing all necessary formal procedures.

The minister stressed that the surcharge is not a new tax under President Bola Tinubu’s administration but a long-standing provision introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act.

He explained that its inclusion in the 2025 Act is meant to harmonise existing laws for better clarity and compliance.

“The tax reform bills and the tax act would not become operational until January 1, 2026, and the 5 per cent fuel surcharge mentioned therein will not automatically come into effect.”

“There is a process. Before any surcharge can come into effect, it requires a commencement order from the Minister of Finance, which must be published in a gazette,” Edun stated. “As of today, no order has been issued, none is being prepared, and there is no immediate plan to implement any surcharge.”

His clarification comes after the Trade Union Congress (TUC) strongly opposed the proposed tax on Monday, labelling it a “reckless proposal” and an act of “economic wickedness” against already struggling Nigerians.

The union warned that such a policy would worsen hardship, cripple businesses, and push more citizens into poverty, urging the government to stop using Nigerians as “sacrificial lambs” for its economic policies.