Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed claims that President Bola Tinubu’s administration introduced a new 5% surcharge on petroleum products.
Oyedele explained that the levy is not a fresh policy but a provision of the Federal Roads Maintenance Agency (FERMA) Act of 2007, which was only restated in the recently gazetted tax laws for harmonisation and transparency. He stressed that the surcharge was not part of the original tax bills presented by the government to the National Assembly.
The tax expert also clarified that the surcharge does not automatically take effect in January 2026 as widely speculated. According to him, it can only commence when the Minister of Finance issues an official order in the government gazette.
Oyedele further noted that the surcharge is earmarked for road infrastructure funding, not general taxation, with exemptions granted for household kerosene, LPG, CNG, and renewable energy products. He assured that the measure is intended to improve Nigeria’s road network and ease transportation costs rather than impose hardship on citizens.