The Federal Government has assured Nigerians that it has no immediate plans to introduce the five per cent fuel surcharge provided for in the newly signed Tax Administration Act 2025.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this clarification at a news conference in Abuja on Tuesday.

Edun explained that the surcharge was not a new levy introduced by the Tinubu administration but a long-standing provision first introduced under the Federal Road Maintenance Agency (FERMA) Act of 2007. Its inclusion in the 2025 Act, he said, was only 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 new tax. It doesn’t mean fresh taxation automatically,” Edun stated.

He further explained that the new law would not take effect until January 1, 2026, and even then, implementation of the surcharge would require a formal commencement order by the finance minister, to be published in the 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 added.

The minister stressed that government’s broader tax reform effort was designed to overhaul Nigeria’s fragmented tax system, not to impose fresh burdens on citizens. He said the Tax Administration Act was one of four legislative instruments—alongside the Revenue Service Bill, the Joint Revenue Board Bill, and the Tax Reform Bill—crafted to improve transparency, simplify compliance, and modernise revenue collection.

Calling the new law a “transformational legal document”, Edun said its implementation would require institutional realignment, capacity building, and extensive public sensitisation.

He assured Nigerians that the administration was mindful of economic pressures and would prioritise stability, efficiency, and private-sector-led growth over new taxes.

“This government is fully aware of the economic pressures of the time and will not take decisions that will make things even more burdensome. Our priority is to strengthen tax governance, block revenue leakages, and improve efficiency rather than just levy new taxes, charges, and costs,” he said.

Edun added that Nigeria’s ongoing macroeconomic reforms were already improving investor sentiment, citing positive signals from development partners and rating agencies.

He said that proper communication and sensitisation would precede any implementation steps in the coming months.