The Federal Government has clarified that the recently announced 5% fuel surcharge is not a new tax!
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The Federal Government has clarified that the recently announced 5% fuel surcharge is not a new tax but a dedicated infrastructure fund aimed at improving Nigeria’s roads and transport systems. Arabinrin Aderonke Atoyebi, a technical assistant on broadcast media to the Executive Chairman of the Federal Inland Revenue Service (FIRS), addressed public concerns, emphasizing that the surcharge is specifically for road maintenance and development.
Key Points:
• Purpose of the Surcharge: The 5% fuel surcharge is intended to fund the maintenance and expansion of Nigeria’s road infrastructure, ensuring safer and more efficient transportation across the country.
• Not a New Tax: This surcharge is not a new imposition under the 2025 Tax Act. It has existed since 2007 under the Federal Roads Maintenance Agency (FERMA) Act. The recent update modernizes the framework for better transparency and efficiency.
• Implementation Timeline: The surcharge will not take effect automatically in January 2026. Its implementation requires an official directive from the Finance Minister and publication in the Federal Government Gazette.
• Exemptions: Households relying on kerosene, LPG, CNG, or renewable energy sources will not be affected by this policy.
Dedicated Funding: The surcharge ensures that funds collected are exclusively used for road and transport infrastructure, preventing competition with other critical sectors like education and healthcare.
The government believes that this measure will sustain and expand ongoing improvements on major highways, such as the Lagos-Ibadan Expressway, Abuja-Kaduna Road, and parts of the Enugu-Onitsha route. By having a dedicated fund, the government aims to ensure long-term maintenance and development of Nigeria’s transport infrastructure.
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