Abdulwahab Isa 
The 5% surcharge tax law on fuel is not a new tax introduced by the current administration, Taiwo Oyedele, Chairman Presidential Fiscal Policy and Tax Reforms Committee, clarified on Saturday via his official X handle.
Oyedele said the provision already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007, noting that its restatement in the new Tax Act is for harmonisation and transparency rather than immediate implementation.
The resurfacing of the 5% surcharge tax law on fuel attracted public discourse recently, with most Nigerians condemning its introduction.
Shedding light on the subject matter which he addressed through “frequently asked questions, Oyedele posed: Did 5% ?
“No. The surcharge is not new. It already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007 (FERMA Act). The new Tax Act only restates it for harmonisation and transparency.
Hence, it was not part of the original tax reform bills submitted by the president to the National Assembly”. 2026 ?
“No. 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”, he said.
According to him, “Will the surcharge apply to all fuel products?
” No. Several energy products used by households are exempt. This includes household kerosene, cooking gas (LPG), and compressed natural gas (CNG). Clean and renewable energy products are also excluded to align with Nigeria’s energy transition agenda”,
On why the government would not abolish the charge, given the current hardship and the risk of higher inflation, he affirmed that, “the surcharge is designed as a dedicated fund for road infrastructure and maintenance.
” If implemented effectively, it will provide safer travel conditions, reduce travel time and cost, lower logistics costs and vehicle maintenance expenses, which will benefit the wider economy.
“This practice is virtually universal, with over 150 countries imposing various charges ranging between 20% to 80% of fuel products to guarantee regular investment in road infrastructure”.
