Why Tinubu Did Not Submit 5% Fuel Surcharge Bill To NASS For Approval — FG

The five percent surcharge on fuel which has become a subject of controversy, will not take effect alongside the new tax laws in January 2026, the federal government has said.

The clarification was issued by the Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele which explained that the provision is not a new tax introduced by President Bola Tinubu’s administration but a restatement of an existing law dating back nearly two decades.

According to him, the surcharge already exists under the Federal Roads Maintenance Agency (Amendment) Act of 2007. Its inclusion in the Nigeria Tax Act 2025 is not a fresh imposition but part of government efforts to harmonise overlapping tax laws, improve transparency, and modernise the fiscal framework.

“This is not a new tax,” the committee stressed. “It has always been part of the FERMA Act. What the new tax law does is restate it for clarity and consolidation. It was not included in the original tax reform bills sent by the President to the National Assembly.”

The clarification followed public anxiety after reports suggested that motorists could face higher fuel prices in January when the sweeping tax reforms take effect.

The committee emphasised that the surcharge will not automatically begin with the new tax laws. Activation requires a separate process, including an order by the Minister of Finance to be published in the Official Gazette.

“This safeguard ensures careful consideration of timing and economic conditions before implementation,” Oyedele said.

He also noted that the surcharge will not apply across all petroleum products.

If implemented in the future, the levy will mainly affect petrol and diesel, the fuels most widely used in transportation and logistics.

Amid calls for its abolition given current economic hardship, the committee defended the surcharge as a dedicated fund for road infrastructure and maintenance.

“If implemented effectively, it will enhance road safety, reduce travel time, lower logistics costs, and cut down vehicle maintenance expenses,” the statement said.

“Globally, more than 150 countries impose fuel-related charges ranging from 20 percent to 80 percent to guarantee regular road investment.”

The government added that while savings from subsidy removal have freed up resources, they remain inadequate to meet Nigeria’s vast infrastructure needs. A ring-fenced fund, it argued, ensures predictable financing for road maintenance and complements the federal budget.

Some critics have questioned why such a surcharge remains in place when the Tinubu administration is promising to reduce the tax burden.

But the Fiscal Policy Committee insisted that broader reforms have already eased pressure on households and businesses. It cited the suspension of VAT on fuel, the removal of the telecoms excise tax, and the cancellation of the cybersecurity levy.

“By harmonising earmarked taxes under one framework, government is reducing duplication, easing compliance, and creating a more efficient tax system,” it explained.

The committee also clarified why President Tinubu did not specifically send a “fuel surcharge bill” to the National Assembly. It explained that since the surcharge was already law under the FERMA Act, what went before lawmakers was simply a consolidation exercise.

“The surcharge has been removed from the FERMA Act and re-incorporated into the new tax law to provide Nigeria with a forward-looking fiscal framework,” the statement said. “It is not about immediate activation, but ensuring legal clarity when the government chooses to act.”

ENDS

Why Tinubu Did Not Submit 5% Fuel Surcharge Bill To NASS For Approval — FG is first published on The Whistler Newspaper