5% Fuel Surcharge Explained: Presidency Clears Misconceptions, Reveals What Nigerians Really Need to Know

Published on 7 September 2025 at 08:56

The Office of the Special Adviser on Media and Public Communication to President Bola Tinubu has addressed public concerns and misconceptions surrounding the 5% fuel surcharge recently trending on social media.

According to Sunday Dare, Spokesperson to the President, the charge is not a new tax introduced by the current administration. It is an existing provision under the Federal Roads Maintenance Agency (Amendment) Act, 2007, now restated in the new Tax Act for harmonisation and transparency.

Dare clarified that the surcharge does not take effect automatically with the new tax laws. Its implementation will only occur when the Minister of Finance issues an order published in the Official Gazette, ensuring careful consideration of timing and economic conditions.

He also stressed that the surcharge will not affect household energy products, including kerosene, LPG, and compressed natural gas (CNG), nor clean and renewable energy sources, in line with Nigeria’s energy transition agenda.

Highlighting the rationale, Dare explained that the surcharge is a dedicated fund for road infrastructure and maintenance, designed to guarantee safer travel, reduce travel time, and provide predictable funding for road projects. He noted that while fuel subsidy savings contribute to funding, they are insufficient to meet Nigeria’s recurring infrastructure needs.

The spokesperson further emphasized that the surcharge has been removed from the FERMA Act and incorporated into the new tax laws, creating a harmonized legal framework for Nigeria’s road maintenance. This measure is not about immediate collection, but about ensuring a clear legal basis for future implementation.

The clarification aims to reassure citizens, correct misunderstandings circulating online, and provide transparency on how the surcharge will function when activated.

Reported by: Stone Reporters News
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