5 Percent Petrol Tax: FG Yet To Decide Implementation Date

The federal government has announced that the controversial five percent tax on petrol and other fuel will not take effect in January 2026, contrary to what is being said in the public.

The Chairman of the  Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele made this known on Thursday, following the outbursts from not a few Nigerians that the tax will worsen the already- bad economic situation in the country.

Recall that President Bola Ahmed Tinubu had signed the 2025 Tax Bill in July this year, thereby unveiling a new tax regime that overhauled the nation’s tax system. The tax law, according to reports is expected to take effect from January next year.

But following the outcry that has greeted reports that Nigerians are to pay five percent fuel tax, Oyedele announced yesterday that the federal government had yeat to determine when to begin to collect fuel tax, saying the date will soon be announced by the Minister of Finance, and Coordinating Minister of the Economy, Wale Edun.

He stressed that the Tinubu- administration may also decide whether it will implement the tax law or not.

He, however, stated that the tax fro  fuel is expected to be used to fund transportation infrastructure, with the aim of bringing down the cost of transportation and logistic in the country.

“There was a law that was enacted way back with a surcharge on fuel under the FEMA act. This is the provision in the new tax law, and it does not take effect as of January 2026. I know some people have been giving wrong information about this,” Oyedele said on Friday in a video release by the State House, Abuja.

Stressing that “What is in the law is that this surcharge will take effect on a date in the future based on an order to be released by the Minister of Finance. We know the Minister of Finance is responsible enough to determine when it is appropriate to do so.

Speaking further, Mr Oyedele said the five per cent tax on fuel “is to earmark and dedicate the revenue from this tax to providing transport infrastructure that can reduce the cost of transportation items and logistics and overall reduce inflation for Nigerians.”

Meanwhile, not a few Nigerians have condemned the tax, saying it will further impoverish and worsen their economic conditions.