THE Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the much-debated 5% surcharge on fuel purchases was not introduced by President Bola Tinubu’s administration, but has been part of Nigerian law since 2007.
Speaking on Channels Television’s Morning Brief programme on Tuesday monitored by News point Nigeria, Oyedele dismissed reports that the surcharge was a fresh initiative of the current government, stressing that the law was enacted over 16 years ago but never enforced due to fuel subsidy payments.
“One very important message for people to know is that this surcharge was not introduced by this government. It was introduced in 2007,” Oyedele explained.
“At the time, it was not implemented because the government was subsidising fuel.”
In recent days, reports had circulated widely that the Federal Government was set to begin enforcing a 5% levy on fuel sales in January 2025. The development triggered widespread backlash, with critics faulting the timing amid economic hardship, high inflation, and rising fuel costs.
Civil society groups and trade unions, including the Trade Union Congress (TUC), strongly condemned the plan, with the TUC threatening to embark on strike if the government went ahead. The Organised Private Sector (OPS) also rejected the surcharge, describing it as an additional burden on businesses and households.
Oyedele explained that the law establishing the surcharge mandated the Federal Road Maintenance Agency (FERMA) to collect the funds, with a revenue-sharing formula that allocates 40% to the Federal Government for federal roads and 60% to the states for road projects.
He emphasised that the surcharge was not included in President Tinubu’s recently signed tax reforms, noting that it only resurfaced during legislative deliberations.
“While we were doing this tax reform, it was not even in the original proposal, so it was not like the President proposed it to the National Assembly,” Oyedele said.
“But during the process of working on the bills, the issue came up. The decision was taken that we should not have different agencies collecting taxes.”
Contrary to viral reports, Oyedele stressed that there was no official date set for implementation, dismissing claims that enforcement would begin in January 2025.
He argued that, if eventually implemented, the surcharge would be channeled toward maintaining and rehabilitating Nigeria’s deteriorating road infrastructure, which he said would directly benefit citizens.
The clarification comes amid heightened debate on how to fund critical infrastructure in the wake of subsidy removal.
