The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dispelled claims that President Bola Tinubu’s government introduced a 5% surcharge on fuel.
According to Oyedele, the law was actually introduced in 2007 under the Federal Roads Maintenance Agency (FERMA) Act.
The surcharge, which was initially not implemented due to fuel subsidies, is designed to fund road maintenance and infrastructure, with 40% allocated to federal roads and 60% to states.
Oyedele explained that the provision was restated in the new tax law for clarity and harmonization, not as a new tax.
The implementation of the surcharge is not automatic and will only begin when the Minister of Finance issues an order published in the Official Gazette.
Household fuels like kerosene, LPG, and CNG are exempt from the surcharge.
The clarification comes amid public backlash and speculations about the surcharge’s implementation in January.
Oyedele believes the fee will help maintain Nigeria’s road infrastructure, benefiting Nigerians in the long run. Critics, including civil society organizations and trade unions, have faulted the move, calling on the government to reconsider.
