₦airaland Forum

No Plans To Implement 5% Fuel Tax Anytime Soon – Wale Edun

The minister’s explanations follow growing concerns regarding the implementation of the 5 per cent fuel tax.

Finance Minister Wale Edun has clarified that there are no immediate plans to implement the proposed 5 per cent tax on petroleum products.

Speaking to reporters in Abuja on Tuesday, the Minister explained that although the policy is included in the new tax administration set to take effect on January 1, 2026, its implementation will not proceed without following all formal processes involved.

The minister’s explanations follow growing concerns regarding the implementation of the 5 per cent fuel tax.

Addressing the tax, Edun clarified that the surcharge is a long-standing provision, originally introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and is not a new tax introduced by President Bola Tinubu’s administration.

The minister further explained that the inclusion of the surcharge in the 2025 Act is aimed at consolidating and harmonizing existing laws for greater clarity and easier compliance.

He said, “The tax reform bills and the tax act would not become operational until January 1, 2026, and the 5 per cent fuel surcharge which is mentioned therein will not automatically come into effect. There is even a process.

“Before any surcharge can come into effect it requires the commencement order from the honourable Minister of Finance and this indeed must be published in a gazette, so it is not automatic that we will wake up on January 1 and there is a new tax.

“There is a whole formal process involved and as at today no order has been issued, no is being prepared and there is no immediate plan to implement any surcharge.”

On Monday, the Trade Union Congress (TUC) rejected the 5 per cent tax on petroleum products, describing it as a “reckless proposal” which is “nothing but an act of economic wickedness against already overburdened Nigerians”.

The union said that the government policy, if implemented, would compound suffering, cripple businesses, and push millions of citizens deeper into poverty.

It stated that the Federal Government cannot continue to use Nigerians as sacrificial lambs for its economic experiments.

motymop:
the minister has explain that the 5% tax has been in place since 2007, that means we have been paying the tax without we knowing about it

watch as they spin this.

Addressing the tax, Edun clarified that the surcharge is a long-standing provision, originally introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act, and is not a new tax introduced by President Bola Tinubu’s administration

The road cost a total of 170 million naira (nearly 266 million dollars). And to recover at least part of that cost, and to pay for its upkeep, road users will have to pay a toll. Even at the opening ceremony, Brigadier Shehu Yar'Adua led the way in paying for the service the new expressway offers."

naptu2:
Kai!

The law has been in place since 2007. In fact, it was proposed as far back as 2003, but implementation was suspended in 2004 due to a strike by the NLC and several lawsuits.

If you've been paying it since 2007, then why are some people talking about January 2026??

But we know that you are just trying to spin things.

AMINDA:
"Tinubu didn't introduce the 5% tax on fuel, he only wants to implement it" - Batists

The 5% tax is now redundant and should be scrapped because as at when it was introduced, government was still paying subsidy on fuel. Even at that, Tinubu was against it then, and it was suspended. They told us proceeds from removal of subsidy will go towards infrastructure. Where are the infrastructure? Will the 5% tax replace tolling or will the roads still be tolled after imposing 5% tax on fuel?

naptu2:
In the simplest English possible, one of the reasons for the creation of the new tax law is to harmonise all other tax laws. There were so many taxes in so many different laws and they decided to put everything in one law. That's all that happened.

They are not imposing a new petrol tax and they are not implementing the old one. What the government has been talking about is reintroducing the toll plazas, not petrol tax.

Tinubu’s government to reintroduce toll gates on Lagos-Ibadan expressway, second Niger Bridge and others
https://metrodailyng.com/tinubus-government-to-reintroduce-toll-gates-on-lagos-ibadan-expressway-second-niger-bridge-and-others/

naptu2:
Then write your legislator!

AMINDA:
Typical response when cornered. Same legislators that had their budgets increased from 150 billion to over 370 billion? They are now a parastatal under Tinubu. Let him continue to impose devastating taxes on the populace to test the limit of their endurance. The Nepalese government were also arrogant in their posturing until the people had enough.

naptu2:
Everybody knows that you just became active here in the past few months because of the 2027 elections and everybody knows what your job here is. I am not interested in any of you people's partisan agendas. I deal with facts.

The fact is that the executive is responsible for implementation and they've said that they are not going to implement.

The legislature is responsible for making and repealing laws, so write your legislator is you want the law repealed. That's why you have a representative!

Since you have not been able to respond to this point, then I take it that you have no point and there's no reason to continue engaging you.

Goodbye (I won't read your post anymore).