SEO Riders
– 5% Fuel Levy Deferred, Requires Ministerial Order and Gazette Publication
– Surcharge from 2007 FERMA Law, Not a New Tax—Recast for Clarity
– Implementation Set for After Jan 2026; Extensive Sensitisation Ahead-
Finance Minister and Coordinating Minister of the Economy, Wale Edun, clarified on September 9, 2025, that the 5% fuel surcharge included in the newly enacted Nigeria Tax Administration Act 2025 will not be implemented immediately, or even automatically at the turn of the year. He explained that this levy, originally part of the 2007 Federal Roads Maintenance Agency (FERMA) Act, has been incorporated into the new tax law simply to streamline and harmonise existing legislation—not to introduce an additional fiscal burden. A formal commencement order by the minister—and its subsequent publication in the official gazette—must precede any activation. At this time, no such order is being prepared, reinforcing that there is no plan to apply the surcharge in the near term.
Edun emphasized that the broader tax reform is designed to modernise Nigeria’s tax system—improving clarity, compliance, and investor confidence—without increasing financial strain amid economic challenges. The Act is supported by three other legislative instruments (Revenue Service Bill, Joint Revenue Board Bill, and Tax Reform Bill) aimed at reforming revenue collection. He reiterated the administration’s commitment to effective preparation—through institutional realignment, capacity building, and public sensitization—before transitioning from legislation to real-world implementation.
