Finance minister Wale Edun.

Finance Minister Wale Edun has clarified that the Federal Government has no immediate plans to implement a proposed 5 per cent surcharge on petroleum products, despite its inclusion in a new tax reform framework scheduled to take effect in 2026.

Speaking to reporters in Abuja on Tuesday, Edun stressed that the measure is not a new tax introduced by President Bola Tinubu’s administration but rather a long-standing provision under the Federal Road Maintenance Agency (FERMA) Act of 2007. He explained that its reference in the new tax legislation was part of an effort to consolidate and harmonise existing tax laws for clarity and easier compliance.

“The tax reform bills and the tax act would not become operational until January 1, 2026, and the 5 per cent fuel surcharge which is mentioned therein will not automatically come into effect. There is even a process,” Edun said.

He noted that for any surcharge to be enforced, a commencement order must first be issued by the Minister of Finance and formally published in the government gazette. “It is not automatic that we will wake up on January 1 and there will be a new tax. There is a whole formal process involved, and as of today no order has been issued, none is being prepared, and there is no immediate plan to implement any surcharge,” he added.

The clarification follows public outcry and fears that Nigerians would face additional costs at the fuel pump. On Monday, the Trade Union Congress (TUC) strongly rejected the proposal, calling it “reckless” and describing it as an act of “economic wickedness against already overburdened Nigerians.”

In its statement, the union warned that implementing the policy would worsen economic hardship, cripple businesses, and push millions further into poverty. It urged the government to abandon the plan, insisting that Nigerians should not be used as “sacrificial lambs for economic experiments”.

The controversy comes at a time when the country is still grappling with the impact of fuel subsidy removal, which has led to higher transportation costs and inflationary pressures across various sectors. While the government has defended subsidy removal as necessary to stabilise public finances, labour unions and civil society groups have consistently pushed back against policies that could further strain household incomes.

For now, Edun’s assurance suggests that Nigerians will not face the additional 5 per cent surcharge in the near future, though questions remain about whether the government may revisit the measure as part of long-term fiscal reforms.