Nigeria’s Finance Minister, Wale Edun, has clarified that there are no immediate plans to implement the proposed 5% tax on petroleum products, despite widespread concerns and criticism from labor unions and the public.
Speaking to reporters in Abuja on Tuesday, Edun explained that while the policy is captured under the new tax administration framework scheduled to take effect on January 1, 2026, its activation is not automatic and must go through formal processes.
He noted that the 5% fuel surcharge is not a new levy introduced by the Tinubu administration, but rather a long-standing provision originally contained in the Federal Road Maintenance Agency (FERMA) Act of 2007. The recent mention of the tax in the 2025 Act, he said, was part of a broader effort to harmonize and consolidate existing laws for clarity and compliance.
“The tax reform bills and the tax act would not become operational until January 1, 2026,” Edun stressed. “Even then, the surcharge will not automatically come into effect. Before any such measure can be enforced, it requires a commencement order from the Honourable Minister of Finance, which must be published in the official gazette.”
The minister emphasized that no such order has been issued or prepared and reiterated that there is no immediate plan to begin collection of the surcharge.
However, the announcement comes amid sharp opposition from the Trade Union Congress (TUC), which on Monday strongly rejected the proposed fuel tax. The union labeled it a “reckless proposal” and an “act of economic wickedness” that would worsen the plight of already struggling Nigerians.
According to the TUC, if implemented, the policy would “compound suffering, cripple businesses, and push millions deeper into poverty.” The union further warned that the Federal Government cannot continue to treat Nigerians as “sacrificial lambs for economic experiments.”
The debate over the fuel surcharge underscores the growing tension between government policy and public resistance, especially in light of the economic hardship many Nigerians currently face.
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