The Federal Government has clarified concerns surrounding the five percent fuel surcharge in the newly signed Nigerian Tax Administration Act 2025, stressing that it is not a new tax and will not be automatically enforced next year.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, addressed journalists in Abuja, explaining that the surcharge had first been introduced in 2007 under the Federal Road Maintenance Agency (FERMA) Act.
According to him, the provision was designed to support road maintenance and safety, with 40% of proceeds allocated to FERMA for federal road upkeep, while 60% goes to states.
Mr. Edun noted that although the surcharge has been in existence for over 15 years, its inclusion in the 2025 Act was intended to clarify and streamline Nigeria’s tax framework, making it easier for citizens to understand and comply with.
Writing by Gladys Haruna