No ₦500 Fuel Levy From January 2026, Awaits Ministerial Order — Tax Reform Chairman Clarifies
By Joseph Iyaji | Akahi News
The Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, has debunked circulating claims that Nigerians will start paying a ₦500 fuel surcharge from January 2026, insisting that no such levy is scheduled to take effect on the stated date without an official order from the Minister of Finance.
In a video message released by the State House, Oyedele explained that while the new tax law reintroduces a fuel surcharge provision under the Federal Emergency Management Agency (FEMA) Act, its commencement date remains unspecified.
Clarification on Fuel Surcharge
“There’s a law enacted some years back with a surcharge on fuel under the FEMA Act,” Oyedele said. “This provision is now in the new tax law, but it does not take effect as of January 2026. The effective date will only be determined when the Minister of Finance issues an official commencement order.”
The tax reform chairman stressed that public anxieties over a supposed January 2026 implementation are misplaced, noting that misinformation had spread widely following the passage of the new tax administration laws.
Purpose of the Proposed Surcharge
According to Oyedele, the levy—once operational—is intended to generate revenue for transport infrastructure development, aimed at reducing logistics costs, easing commuter expenses, and tackling inflation in the long run.
He reassured citizens that the Federal Government would only approve the commencement when economic conditions make it reasonable and beneficial to do so.
Legal Perspective on the 5% Levy
Providing a legal context, Dr. Misbau Alamu Lateef, a taxation law expert, explained that the 5% fuel levy has existed since 2007 under the Federal Roads Maintenance Agency (FERMA) Amendment Act but has never been implemented.
“The new Tax Administration Act 2025 merely re-enacted the provision,” Lateef noted. “The law clearly states the levy shall take effect ‘from such date as the Minister may, by order published in the Gazette, appoint.’ To date, no such order has been issued.”
He further clarified that while the January 2026 date marks the general commencement for four new tax laws, the specific 5% surcharge provision remains dormant until a ministerial directive activates it.
Public Concerns Addressed
The clarification comes amid widespread concern that the fuel surcharge would worsen the cost-of-living crisis already affecting millions of Nigerians under the current administration.
However, both Oyedele and Lateef confirmed that there is no immediate plan to impose the levy in January 2026, with any potential commencement hinging strictly on a future decision by the Finance Ministry.
With this explanation, Nigerians are urged to disregard false reports suggesting that an additional fuel levy will automatically come into force in early 2026.
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