Tinubu’s 5% Fuel Tax Won’t Start in January 2026
By YourNewsDesk — Published: September 5, 2025
Executive Summary
President Bola Tinubu’s controversial 5% surcharge on all refined fossil fuel sales will not be enforced starting January 2026. Instead, the commencement date will be formally set by Finance Minister Wale Edun. The delay is designed to reduce misinformation and allow for logistical preparations while ensuring that generated revenues are allocated toward infrastructure and inflation relief. :contentReference[oaicite:2]{index=2}
Why January 2026 Is Off the Table
Confusion has spread across media and social platforms suggesting the 5% fuel surcharge begins in January 2026. The government, through Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, clarified this in a State House video. He stated the surcharge is part of an existing legal framework—originally under FEMA and now included in the Tax Administration Act—but requires a separate ministerial trigger to become active. :contentReference[oaicite:3]{index=3}
Legal and Procedural Clarity
Legal experts confirm that the 5% fuel surcharge is not brand-new—it has existed since the FERMA Act of 2007 but was never enforced. Under the Tax Administration Act of 2025, the surcharge only becomes effective once the Finance Minister issues a commencement order in the government gazette. This step has not yet been taken. :contentReference[oaicite:4]{index=4}
Purpose: Funding Transport and Reducing Inflation
The intended revenue from the surcharge will be legally earmarked for transport infrastructure projects. The government’s position is that improved roads and logistics networks will ultimately help lower the cost of transportation, easing inflationary pressure on Nigerians. :contentReference[oaicite:5]{index=5}
Public Backlash and Economic Concerns
The announcement has drawn sharp criticism amid Nigeria’s soaring cost of living. Stakeholders like PETROAN warned that consumers will bear the burden, while civil society groups and opposition figures—including Peter Obi—called the move insensitive. Concerns center on how the surcharge might further hike pump prices and worsen economic hardship. :contentReference[oaicite:6]{index=6}
“Nigerians will pay a five per cent tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation.” — Peter Obi :contentReference[oaicite:7]{index=7}
What Happens Next?
- Finance Minister Wale Edun must issue an official implementation date in the government gazette.
- Stakeholder readiness and public awareness must be managed before any rollout.
- Monitoring and evaluation mechanisms are needed to ensure the surcharge benefits transport infrastructure and does not unduly burden citizens.
Conclusion
The 5% fuel surcharge under Tinubu’s Tax Administration Act remains dormant pending the Finance Minister’s order. Nigerians should not expect automatic enforcement in January 2026. At its best, the tax could improve infrastructure and reduce logistics costs; at its worst, it risks deepening economic strain if not managed carefully. The coming weeks will reveal whether the government will proceed or pause amid ongoing backlash.