Government says the 5% fuel surcharge is not new but part of the 2007 FERMA Act.
The Federal Government has clarified that the controversial 5% fuel surcharge is not a new tax introduced by the Tinubu administration.
According to a statement on Monday, the provision has existed under the Federal Roads Maintenance Agency (Amendment) Act, 2007, and was only restated in the new Tax Act for harmonisation and transparency.
Officials explained that the surcharge will not take effect immediately or in January 2026 when the new tax laws kick in. “It will only commence when the Minister of Finance issues an order in the Official Gazette,” the statement said.
The charge, designed to fund road infrastructure, excludes household kerosene, LPG, compressed natural gas, and other clean energy products.
The government argued that subsidy savings alone cannot meet Nigeria’s massive road maintenance needs. It also stressed that recent reforms have eliminated several levies to ease the tax burden while harmonising earmarked funds for critical infrastructure.