Finance Minister Wale Edun has assured Nigerians that there are no immediate plans to implement the proposed 5 per cent tax on petroleum products.

Speaking to reporters in Abuja on Tuesday, Edun explained that although the surcharge is referenced in the new tax administration framework scheduled to take effect on 1 January 2026, its application cannot proceed without following the required formal processes.

He clarified that the surcharge is not a new levy introduced by President Bola Tinubu’s administration but a long-standing provision established in 2007 under the Federal Road Maintenance Agency (FERMA) Act. Its inclusion in the 2025 Act, he said, is aimed at consolidating and harmonising existing laws for clarity and compliance.

“The tax reform bills and the tax act will not become operational until January 2026, and the 5 per cent fuel surcharge mentioned therein will not automatically take effect. Before it can be implemented, a commencement order must be issued by the Minister of Finance and published in a gazette. As of today, no such order has been issued or is being prepared. There is no immediate plan to implement any surcharge,” Edun said.

His remarks followed growing criticism of the proposal. On Monday, the Trade Union Congress (TUC) rejected the levy, describing it as a “reckless proposal” and “an act of economic wickedness” against already overburdened Nigerians. The union argued that if enforced, the policy would worsen hardship, cripple businesses, and push millions deeper into poverty.

The TUC added that the Federal Government cannot continue to treat citizens as “sacrificial lambs” for its economic experiments.