The Federal Government of Nigeria has clarified that there is no immediate plan to implement the 5% Petroleum Products Tax contained in the new tax legislation. This assurance was given by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a press briefing in Abuja.
The tax, which has sparked widespread public anger and threats of industrial action from organised labour, was reaffirmed as not set for immediate application. Edun explained that the 5% surcharge is not a new tax but a provision existing since 2007 under the Federal Roads Maintenance Agency (FERMA) Act, now incorporated into the 2025 Nigeria Tax Administration Act for harmonisation and transparency.
For the tax to take effect, a formal commencement order from the Minister of Finance must be issued and published in the official gazette, which has not yet happened. The government is conscious of the current economic hardships Nigerians face and is not inclined to exacerbate the situation.
The surcharge is meant to fund road infrastructure and maintenance projects but will only be implemented after appropriate consideration and stakeholder engagement.
This statement seeks to calm public fears and emphasise that any future implementation will be gradual, with clear communication and due process.