Confusion has erupted online over a supposed 5% fuel surcharge under Nigeria’s new tax laws, with many fearing a sudden increase in fuel prices.
The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Saturday through a post on X, clarified what is fact and what is fiction.
According to the Punch Newspaper, the controversy arises from the recent passage of the Nigeria Tax Act, 2025, which consolidates and harmonises previous tax laws.
Some social media posts suggested that President Bola Tinubu’s administration had introduced a new surcharge on fuel, sparking public concern.
Oyedele clarified: “The charge is not a new tax introduced by the current administration. The provision already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007. Its restatement in the new Tax Act is for harmonisation and transparency rather than immediate implementation.”
According to Oyedele, the surcharge is meant to fund road infrastructure, an area that has historically suffered from underfunding.
Over the years, Nigeria’s road network has faced chronic maintenance challenges, resulting in potholes, travel delays, and higher vehicle operating costs.
Oyedele further noted that the surcharge is intended to create a dedicated, predictable funding source for road construction and maintenance.
Oyedele addressed key questions raised by citizens:
Will the surcharge start automatically in January 2026?
No. It will only take effect when the Minister of Finance issues an order published in the Official Gazette:
“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,” Oyedele stated.