The Federal Government has reassured Nigerians that the recently discussed 5% fuel surcharge is not a new tax, but an existing provision dating back nearly two decades.
At a media briefing in Abuja, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, explained that the surcharge was first introduced under the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007 to fund road infrastructure.
Under that law, 40% of the revenue goes to FERMA and 60% to State Road Maintenance Agencies.
Director, Information and Public Relations, Mohammed Manga in a statement quoted the Minister to have clarified that its inclusion in the new Nigeria Tax Administration Act, 2025, signed by President Bola Ahmed Tinubu in June, is aimed at harmonising old provisions into a modern, transparent framework—not adding fresh levies on citizens.
Mr. Edun described the Tax Administration Act as Nigeria’s most comprehensive tax reform yet, noting that it consolidates multiple tax laws into one, eliminates more than 50 overlapping taxes, and introduces clearer, simpler systems to improve compliance and attract investment.
He stressed that the Act will not take effect until January 1, 2026, giving government time to prepare institutions, build capacity, and consult widely with stakeholders.
Preparations already underway include harmonising tax processes across MDAs, designing a Tax Ombudsman framework, and strengthening coordination with state governments.
“This is not just another law; it is a catalyst for growth,” the Minister said. “We are planning a phased rollout to avoid disruption and ensure the benefits reach all Nigerians.”
The Minister reaffirmed President Tinubu’s economic vision: private sector-led growth, with government as an enabler. He highlighted two key priorities—maintaining a stable macroeconomic environment to boost investment and jobs, and building government savings to finance education, healthcare, infrastructure, and technology.
“Our focus is on easing the pressure on households and businesses,” Mr. Edun stressed. “Macroeconomic stability is non-negotiable, and every decision we take is guided by that principle.”
He further assured Nigerians of the government’s commitment to transparency and continuous engagement with citizens, businesses, and development partners as reforms progress.
“We are on a path of renewed stability and growing investor confidence,” the Minister concluded. “The task ahead is to turn these gains into real improvements in people’s lives—more jobs, better incomes, and stronger public services. That is the economy we are building: one that works for everyone.”
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