The Federal Government has clarified that the recently debated 5% fuel surcharge is not a new tax but an existing levy introduced under the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007.
Speaking at a media briefing in Abuja, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, explained that the surcharge—now referenced in the Nigeria Tax Administration Act, 2025—is meant to harmonise tax provisions within a modern legal framework, not to impose additional burdens on Nigerians.
Edun noted that proceeds from the surcharge are shared between FERMA (40%) and State Road Maintenance Agencies (60%) to sustain road infrastructure funding. He stressed that the Nigeria Tax Administration Act, signed by President Bola Ahmed Tinubu in June 2025, consolidates multiple tax laws, eliminates over 50 overlapping levies, and modernises revenue administration to improve compliance and attract private investment.
The Minister further clarified that the Act will not take effect until January 1, 2026, allowing time for restructuring, institutional capacity building, and consultations with states. Preparations are underway, including tax process harmonisation, establishment of a Tax Ombudsman, and subnational revenue coordination.
Reaffirming the administration’s economic strategy, Edun said the reforms are designed to simplify taxes, strengthen compliance, block leakages, and create a stable macroeconomic environment to drive private sector-led growth. He emphasised that government savings would be channelled into strategic investments in education, healthcare, infrastructure, and technology.
“Our priority remains easing pressure on households and businesses while laying the foundation for long-term prosperity,” he assured.
