FG Clarifies 5% Fuel Surcharge, Reaffirms Commitment to Macroeconomic Stability
The Federal Government has reassured Nigerians of its unwavering commitment to macroeconomic stability, private sector-led growth, and transparent fiscal management while also clarifying recent concerns surrounding the 5% fuel surcharge referenced in the Nigeria Tax Administration Act, 2025.
Speaking during a media briefing in Abuja, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, reiterated that the fuel surcharge is not a new tax and predates the current administration, as previously stated by the Presidency and the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele.
He stated that the surcharge was first introduced under the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007 to provide sustainable financing for road infrastructure, with 40% of the proceeds allocated to FERMA and 60% to State Road Maintenance Agencies. Its inclusion in the Nigeria Tax Administration Act, 2025, he clarified, is not intended to introduce a fresh levy but rather to harmonise existing tax provisions within a modernised legal framework.
The Minister highlighted the transformative nature of the Nigeria Tax Administration Act 2025, signed into law by President Bola Ahmed Tinubu in June 2025. Describing it as Nigeria’s most comprehensive tax reform to date, he noted that the Act consolidates multiple tax laws into a single, transparent framework, streamlines tax administration, eliminates over 50 overlapping taxes, and modernizes revenue administration to simplify compliance, improve efficiency, and attract private investment.
According to a statement by Mohammed Manga, the Ministry’s Director of Information and Public Relations, the Minister stressed that the Act will not become operational until 1st January 2026, providing ample time for institutional restructuring, capacity building, and policy alignment to ensure smooth implementation.
Edun noted that the Ministry has commenced extensive preparations, including harmonizing tax processes across Federal Government Ministries, Departments, and Agencies (MDAs), designing a Tax Ombudsman framework, and consulting with subnational governments to strengthen revenue coordination.
*This is not just another law; it is a catalyst for growth,* he said. *Its successful implementation will require careful planning and phased execution to avoid disruptions while maximising the benefits for Nigerians.*
Reaffirming the administration’s economic vision, HM Edun outlined President Bola Ahmed Tinubu’s strategy, which prioritizes private sector-driven growth with the government acting as an enabler and catalyst. He highlighted two key priorities underpinning this vision: first, the creation of a stable macroeconomic environment to unlock investments, drive productivity, and stimulate job creation; and second, the strengthening of government savings to fund strategic investments in education, healthcare, infrastructure, and technology — the foundations of inclusive and sustainable growth.
Addressing citizens’ concerns, the Minister reiterated that the government remains sensitive to prevailing economic conditions and that the administration’s priority remains focused on strengthening tax governance, blocking leakages, and enhancing efficiency of revenue collection.
*Our reforms are designed to simplify taxes, strengthen compliance, and create an economy that works for everyone,* Edun stated. *Macroeconomic stability is our top priority, and every policy decision we make is guided by the need to ease pressures on households and businesses while laying the foundations for long-term prosperity.*
The Minister also reaffirmed the government’s commitment to open and continuous engagement with stakeholders, industry players, and the general public as the reforms progress, assuring Nigerians that the Tinubu administration remains dedicated to fiscal transparency, sustainable growth, and inclusive prosperity for all
*We are on a path of renewed stability, growing investor confidence, and accelerating momentum across key sectors.* *Our task now is to translate these gains into tangible improvements in the lives of all Nigerians — through more jobs, higher incomes, and better public services. We remain resolute in building an economy that works for everyone*, the Minister concluded
