The federal government says its proposed 5% fuel surcharge will fund road infrastructure, exempting kerosene, LPG, CNG, and renewables.
ABUJA – The federal government has clarified that the proposed five per cent surcharge on fossil fuel is intended to create a dedicated fund for road infrastructure and maintenance, not an additional burden on household energy costs.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said on Saturday that the levy, outlined in the Nigeria Tax Act 2025, would be implemented only after the Minister of Finance issues an official gazette order.
He explained that the surcharge would improve road safety, reduce logistics costs, and promote economic efficiency, adding that the measure aligns with global standards. “Over 150 countries currently impose similar levies on fuel,” Oyedele noted.
He assured Nigerians that the levy would not apply to kerosene, liquefied petroleum gas (LPG), compressed natural gas (CNG), or renewable energy sources, stressing that exemptions were designed to protect household energy affordability and encourage cleaner alternatives.
The clarification comes amid growing public debate over the fiscal measure, which government officials say is crucial for addressing Nigeria’s chronic road infrastructure gap through sustainable funding.