Nigeria fuel surcharge not scheduled for January 2026, government clarifies; timing of five per cent levy on petrol and diesel depends on Finance Ministry decision

Nigeria fuel surcharge reports have sparked concern among citizens, but the government has clarified that the proposed five per cent levy on petrol and diesel does not have a fixed start date.

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Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said the new Harmonised Tax Act, signed in June by President Bola Tinubu, allows for the surcharge on fossil fuels.

However, he stressed that only the Finance Minister can determine its implementation, and January 2026 is not scheduled.

The levy, when introduced, would apply to petrol and diesel but exclude clean or renewable fuels such as cooking gas, compressed natural gas, and kerosene.

The surcharge provision has its roots in the Federal Roads Maintenance Agency Act of 2002, which created FERMA, and was amended in 2007 to include a five per cent user charge.

Forty per cent of the revenue goes to FERMA, while 60 per cent is allocated to State Roads Maintenance Agencies.

Oyedele explained that the revenue is intended to fund transport infrastructure, reduce logistics costs, and ultimately curb inflation.

Since the removal of fuel subsidies in 2023, petrol prices in Nigeria have tripled, and inflation has risen sharply. President Tinubu recently announced that Nigeria achieved its 2025 revenue target months ahead of schedule, emphasizing efforts to diversify revenue beyond oil.

Organised labour, including the Nigeria Labour Congress, has not yet received formal communication on the surcharge. The union has previously led nationwide strikes over fuel price hikes and is expected to influence public reaction if the levy is implemented.

Opposition figure Peter Obi criticised the proposed surcharge, warning that an additional tax on fossil fuels would worsen hardship for Nigerians already struggling with rising transport costs.

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He urged the government to prioritise funding for education, healthcare, and poverty alleviation instead of imposing new financial burdens.