Nigeria’s five per cent fuel surcharge revives a dormant 2007 law, but enforcement awaits a commencement date from the Finance Ministry.
Nigeria has introduced a five per cent surcharge on petrol and diesel sales under the newly signed Nigeria Tax Administration Act, sparking debate among citizens, businesses, and policy experts. President Bola Tinubu signed the law on June 26, 2025, and the levy applies to all refined fossil fuels, whether locally produced or imported, while exempting kerosene, LPG, CNG, and renewables.
Although widely seen as new, legal experts note that the surcharge was first introduced under the FERMA Act of 2007 but was never enforced. In 2016, the Senate even directed the then PPPRA to remit ₦634 billion in unpaid levies for 2007–2015. “The ‘5% petrol surcharge’ is not new. It has been in our laws since 2007 under the FERMA Act,” lawyer Chima Amanda explained.
Speculation about the tax starting in January 2026 is incorrect, as the law requires Finance Minister Wale Edun to announce an official commencement date through a government Gazette. Until then, no additional charges apply.
Critics, including Peter Obi, argue the levy will further strain Nigerians already hit by high fuel costs after subsidy removal. The government insists, however, that revenue will be used to fund infrastructure and ease transport costs in the long term.