Home Governance 5% Fuel Surcharge: Tinubu Did NOT Introduce New Tax – Fiscal Policy...

5% Fuel Surcharge: Tinubu Did NOT Introduce New Tax – Fiscal Policy Committee Sets the Record Straight

In response to mounting public outcry over a purported new 5% fuel surcharge, the Presidential Fiscal Policy & Tax Reforms Committee has firmly denied claims that President Bola Tinubu’s administration introduced the levy.

According to the Committee, the surcharge is not new. Instead, it has been part of Nigerian law since 2007, embedded in the Federal Roads Maintenance Agency (Amendment) Act. Its reappearance in the newly signed Nigeria Tax Act 2025 is for “harmonisation and transparency” and not for immediate implementation.

The clarification came via a statement amplified by Sunday Dare, Special Adviser on Media and Public Communication to President Tinubu, through his 𝕏 (formerly Twitter) account on Saturday.

The Committee further stressed that the surcharge will not automatically take effect in January 2026, contrary to speculation. Its activation can only begin when the Minister of Finance issues an order officially published in the Federal Gazette.

Additionally, the surcharge excludes household fuels such as kerosene, cooking gas (LPG), and Compressed Natural Gas (CNG), ensuring that daily household energy use is not burdened.

“The surcharge is designed strictly as a dedicated fund for road infrastructure and maintenance,” the Committee explained. “Over 150 countries already implement similar charges, ranging between 20% and 80% of fuel prices, to secure consistent funding for national road systems.”

Officials argued that relying solely on savings from the removal of fuel subsidies would be inadequate to meet Nigeria’s massive infrastructure demands.

The Committee also insisted that ongoing reforms are not about raising new taxes but rather streamlining the system to reduce duplication, ease the tax burden on citizens, and ensure predictable funding for critical development.

This clarification follows rising public debate, with many Nigerians believing Tinubu’s administration had introduced fresh taxation amid current economic hardship.


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