Federal Government has no immediate plans to implement the five per cent fuel surcharge contained in the newly signed Tax Administration Act 2025

The Federal Government has no immediate plans to implement the five per cent fuel surcharge contained in the newly signed Tax Administration Act 2025.

Mr Wale Edun, the Minister of Finance and Coordinating Minister of the economy, said this at a news conference in Abuja on Tuesday.

He said that the surcharge was a long-standing provision first introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and not a new tax measure created by the President Bola Tinubu administration.

According to him, the surcharge’s inclusion in the 2025 Act is part of efforts to consolidate and harmonise existing laws for clarity and ease of compliance.

“It is important to make this distinction; the inclusion of the surcharge in the 2025 Nigeria Tax Administration Act does not mean an automatic introduction of a new tax. It doesn’t mean fresh taxation automatically,” the minister said.

Edun said that the new law would not take effect until January 1, 2026, and even then, any implementation of the surcharge would require a formal commencement order by the Minister of Finance, published in an official gazette.

“There is a whole formal process involved, and as of today, no order has been issued, none is being prepared and there is no plan. There is no immediate plan to implement any surcharge,” he said.

According to him, the government’s broader tax reform effort is a long-overdue overhaul of the country’s fragmented tax system.

Edun said that the Tax Administration Act is one of four legislative instruments passed to improve transparency, simplify compliance for individuals and businesses, and modernise revenue collection.

He said that the other laws include the Revenue Service Bill, the Joint Revenue Board Bill, and the overarching Tax Reform Bill.

“This is a transformational legal document.”

Edun said that the process of preparing the reforms followed years of consultation, technical work and collaboration.

The minister said that moving from legislation to implementation would also involve significant preparation, including institutional realignment, capacity building, and public sensitisation.

Edun said that amid heightened public scrutiny and economic pressure on households, the present administration remains committed to macroeco
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