Presidency clears air on N500 fuel surcharge

The Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, has dismissed circulating claims that Nigerians will begin paying a ₦500 fuel surcharge from January 2026, stressing that the reports are “false and misleading.”

In a video message released by the State House, Oyedele explained that although the recently enacted tax law includes a provision for a fuel surcharge under the Federal Emergency Management Agency (FEMA) Act, it has not yet taken effect.

“What we have is that there’s a law that was enacted some years back with a surcharge on fuel under the FEMA Act. This is a provision that is now in the new tax law, and it does not take effect as of January 2026,” he clarified.

He emphasized that only an official directive from the Minister of Finance can activate the surcharge.

“I know some people have been giving wrong information about this. What is in the new tax law is that this surcharge will take effect on a date in the future, based on an order to be released by the Minister of Finance. And we do know that Mr Finance is responsible enough to determine when it’s appropriate to do so,” Oyedele said.

According to him, revenues from the surcharge are expected to be invested in transport infrastructure, a move he argued would lower logistics costs, ease commuting, and help reduce inflationary pressures.

His clarification comes amid growing public concern that another round of economic hardship could follow the introduction of fresh fuel-related taxes under President Bola Tinubu’s administration.

Adding further context, legal expert Dr. Misbau Alamu Lateef explained that a similar 5% levy on petroleum products has existed in Nigerian law since 2007 under the Federal Roads Maintenance Agency (FERMA) Amendment Act but was never implemented.

“This is my most important message here, this re-enacted provision on 5% surcharge on fossil fuels is neither active yet nor set to become operative in January 2026, as it is being erroneously circulated in places. Its commencement is expressly conditional,” he said.

Dr. Lateef noted that the Tax Administration Act 2025 clearly states the levy would only take effect “from such date as the Minister may, by order published in the Gazette, appoint.”

“To the best of my knowledge, no such order has been made or published. Therefore, the surcharge is not set to take effect in January 2026. Whilst the January 2026 date is the general commencement for the four tax laws, this specific 5% surcharge remains dormant until the required ministerial action,” he explained.

He added that, much like the FERMA Act of 2007, the re-enacted surcharge appears more like a long-term revenue measure than an immediate tax burden.

(SaharaReporters)