No Plans to Implement 5% Fuel Surcharge in January 2026, Says Tax Reform Chair Oyedele

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dispelled reports suggesting that a proposed 5% fuel surcharge will take effect from January 2026.

Speaking during a morning television programme on Tuesday, Oyedele clarified that while the surcharge is included in new legislation, its implementation is subject to a future commencement date that must be formally approved and gazetted by the Minister of Finance.

“The decision was to include it in the law, but its commencement is deferred until a ministerial order is issued. It won’t be introduced arbitrarily or without due process,” Oyedele said.

He revealed that shortly after the new tax laws were signed, the Federal Roads Maintenance Agency (FERMA) attempted to begin collecting the surcharge, but was stopped.

“We had to intervene and remind them that the law specifies they are not the collecting agency, and the tax cannot be implemented until the minister formally declares a start date,” he added. “There is nothing in the law that says the tax will begin on January 1, 2026. People need to get that right.”

Public reaction to the surcharge has been largely negative, with the Trade Union Congress (TUC) threatening to embark on strike action unless the decision is reversed.

Oyedele, however, challenged the basis of the union’s protest, stating that the surcharge was introduced under a previous administration, not that of President Bola Tinubu.

“TUC is threatening to strike over a tax that hasn’t even been implemented,” he said. “There’s nothing to remove because it hasn’t been imposed. If they wanted to protest, it should have been back in 2007 when this was first introduced.”

Addressing concerns about inflation, Oyedele argued that the real economic burden comes from deteriorating road infrastructure and informal levies imposed on transporters.

He pointed out that Nigeria has approximately 200,000 kilometers of roads, but only 60,000 are paved—leading to high logistics costs, safety concerns, and inefficiency.

According to him, the proposed surcharge is intended to generate dedicated funding for road maintenance and improvement.

Oyedele urged Nigerians to be patient, assuring that the fiscal reform efforts under the Tinubu administration are designed to deliver long-term economic benefits.