By Abiola Olawale
Amid rising public anxieties over a 5% fuel tax, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has clarified that the new levy is not a fresh imposition by President Bola Tinubu’s administration.
He explained that the levy originated from a 2007 law and remains dormant until officially activated, countering widespread claims of an imminent “tax grab” set for January 2026.
Oyedele, during an interview with Channels TV emphasized that the surcharge was established under the Federal Roads Maintenance Agency (Amendment) Act of 2007.
He added that the provision’s restatement in the newly signed Nigeria Tax Act, 2025, is merely for harmonization and transparency, not to trigger immediate enforcement.
He said: “One very important message for people to know is that this surcharge was not introduced by this government. It was introduced in 2007.
“And then it was not implemented because the government was subsidising fuel.
“While we were doing this tax reform, it was not even in the original proposal, so it was not like the President proposed it to the National Assembly. But in the process of working on the bills, these issues came up, and then the decision was made that we should not have different agencies collecting taxes.
“So, the law that set up this surcharge mandated the Federal Road Maintenance Agency (FERMA) to collect this surcharge: 40% of it was to be for the Federal Government road, and 60% was meant to go to the states. Like I said, it was not implemented.”
He said there is no indication that the implementation of the surcharge will begin in January, contrary to speculations.
The New Diplomat reports that in the past few days, there have been reports about the 5% fuel tax.
Many individuals had critics faulted the timing of the fee, which they claimed would be implemented in January.
The Trade Union Congress (TUC) had threatened to go on strike over the development, with the Organised Private Sector rejecting it.
