The Federal Government has announced that the proposed 5% surcharge on petroleum products will not take effect until January 2026, and could face further delays.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Tuesday in Abuja while responding to public concerns and threats of industrial action by the Trade Union Congress (TUC), which has given a 14-day ultimatum for the policy to be scrapped.
Edun clarified that although the Tax Administration Act becomes effective on January 1, 2026, the surcharge on petrol, diesel, and other fossil fuels cannot be enforced without a formal commencement order from the Finance Minister, published in the National Gazette. “As of today, no such order has been issued or is being prepared,” he said.
He stressed that the levy is not new but was first introduced under the 2007 Federal Road Maintenance Agency (FERMA) Act. Its inclusion in the new tax law, he explained, was for harmonisation and transparency. Revenues from the surcharge will be channelled into road maintenance — 40% to FERMA and 60% to state road agencies.
Reassuring Nigerians, Edun said government is sensitive to current economic pressures and would not hasten measures that increase hardship. He noted that reforms are focused on improving tax governance, curbing leakages, and driving efficiency.
“Our economic journey in 2025 is already showing renewed stability, stronger investor confidence, and positive ratings globally,” he said. “Reforms will continue responsibly, with emphasis on jobs, incomes, and better public services.”
