The federal government has reassured Nigerians of its unwavering commitment to macroeconomic stability, private sector-led growth, and transparent fiscal management, while also clarifying recent concerns surrounding the 5% fuel surcharge referenced in the Nigeria Tax Administration Act, 2025.
Speaking during a media briefing in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, stressed that the fuel surcharge is not a new tax, as it predates the current administration.
He reiterated that the surcharge was first introduced under the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007, to provide sustainable financing for road infrastructure, with 40% of the proceeds allocated to FERMA and 60% to state road maintenance agencies.
Its inclusion in the Nigeria Tax Administration Act, 2025, he clarified, is not intended to introduce a fresh levy but rather to harmonise existing tax provisions within a modernised legal framework.
The minister used the opportunity to highlight the transformative nature of the Nigeria Tax Administration Act, 2025, signed into law by President Bola Tinubu in June 2025.
Describing it as Nigeria’s most comprehensive tax reform to date, he noted that the Act consolidates multiple tax laws into a single, transparent framework, eliminates over 50 overlapping taxes, and modernises revenue administration to simplify compliance, improve efficiency, and attract private investment.
The minister stressed further that the Act will not become operational until January 1, 2026, providing ample time for institutional restructuring, capacity building, and policy alignment to ensure smooth implementation.
He informed that the ministry has already commenced extensive preparations, including the harmonisation of tax processes across Ministries, Departments, and Agencies (MDAs) of the federal government, the design of a framework for the Tax Ombudsman, and consultations with subnational governments to strengthen revenue coordination.
“This is not just another law; it is a catalyst for growth, he said.
“Its successful implementation will require careful planning and phased execution to avoid disruptions while maximising the benefits for Nigerians.”
Read Also:
- Nigerian inventor unveils clean Fuel from Trees, says it can power Cars, Generators, end black soot pollution
- Fuel scarcity looms as NUPENG insists on strike despite FG intervention over Dangote refinery dispute
- Dangote Refinery surges in global Fuel exports as Saudi Aramco shuts Refineries for maintenance
Reaffirming the administration’s economic vision, Edun explained that Tinubu’s strategy prioritises private sector-driven growth with government acting as an enabler and catalyst.
He highlighted two key priorities underpinning this vision: first, the creation of a stable macroeconomic environment to unlock investments, drive productivity, and stimulate job creation; and second, the strengthening of government savings to fund strategic investments in education, healthcare, infrastructure, and technology, the foundations of inclusive and sustainable growth.
Addressing citizens’ concerns, the minister reiterated that the government remains sensitive to prevailing economic conditions and that the administration’s priority remains focused on strengthening tax governance, blocking leakages, and enhancing the efficiency of revenue collection.
“Our reforms are designed to simplify taxes, strengthen compliance, and create an economy that works for everyone,” Edun stated.
“Macroeconomic stability is our top priority, and every policy decision we make is guided by the need to ease pressures on households and businesses while laying the foundations for long-term prosperity.”
