5% tax on petroleum products deferred until 2026 – Edun  

The Federal Government has clarified that the proposed 5% surcharge on petroleum products will not take effect until January 2026, and may even be further delayed.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known on Tuesday in Abuja while addressing concerns over the new tax. His comments come amid growing criticism and a 14-day ultimatum issued by the Trade Union Congress (TUC), threatening a nationwide shutdown if the policy is not withdrawn.

Edun explained that although the recently passed Tax Administration Act takes effect on January 1, 2026, the surcharge on petrol, diesel, and other fossil fuels cannot be enforced automatically.

“There is a whole process before such a charge can take effect,” he said.

“It requires a commencement order from the Minister of Finance, which must also be published in the National Gazette.

As of today, no such order has been issued or is being prepared.”

The minister stressed that the surcharge is not a new levy but one originally introduced under the 2007 Federal Road Maintenance Agency (FERMA) Act.

He said its inclusion in the new tax law was for harmonisation and transparency.

According to him, proceeds from the surcharge were designed to fund road maintenance, with 40% allocated to FERMA and 60% to state road agencies.

“The objective is to ensure safer, better-maintained roads that support economic growth and mobility,” Edun noted.

He reassured Nigerians that government is mindful of current economic hardships and would not implement measures that worsen the burden.

Instead, he said, priority remains on improving tax governance, blocking leakages, and strengthening efficiency.

“Our economic journey in 2025 is already showing renewed stability, rising investor confidence, and positive assessments from global partners and rating agencies,” Edun added.

“Reforms will continue responsibly, with a focus on creating jobs, raising incomes, and improving public services.”