By Muhammad Mamman
The Presidency has moved to calm public concerns over the proposed five per cent tax on fossil fuel sales, clarifying that the levy will not automatically take effect in January 2026. Instead, Finance Minister Wale Edun will determine the date of implementation.
Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, explained that the surcharge—enacted under the Federal Environmental Management Agency (FEMA) Act and incorporated into the new tax law—remains subject to a commencement order from the minister.
“There is misinformation suggesting this tax will take effect in January 2026. That is not the case,” Mr Oyedele said in a video shared on the State House’s official social media channels on Friday.
“The law provides that the surcharge will only begin on a future date to be announced by the Minister of Finance, who will determine the most appropriate time.”
He added that proceeds from the surcharge would be ring-fenced for investment in transport infrastructure, aimed at reducing logistics costs, easing transportation burdens, and curbing inflation.
The clarification comes amid widespread criticism of the proposed tax, with many Nigerians decrying the additional burden at a time of economic hardship.
Opposition figures, including former Anambra State governor and Labour Party leader Peter Obi, have strongly opposed the plan.
“Nigerians will be forced to pay a five per cent levy on fuel and diesel at a time when millions are already struggling with the cost of transportation,” Mr Obi said.
Despite the pushback, the government insists the policy is designed to deliver long-term economic benefits by addressing the country’s infrastructural gaps. However, the exact timeline for its enforcement remains at the discretion of the Finance Minister.
