Amid public pushback against President Bola Tinubu’s new tax law imposing a five per cent tax on all fossil fuel sales, the presidency has said that Finance Minister Wale Edun will announce when it will take effect.
Through Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the Tinubu-led government stated that the tax law will not take effect in January 2026, but rather whenever Mr Edun decides to implement it.
“There was a law that was enacted way back with a surcharge on fuel under the FEMA act. This is the provision in the new tax law, and it does not take effect as of January 2026. I know some people have been giving wrong information about this,” Mr Oyedele said in a video by the “State House” seen on social media on Friday.
Mr Oyedele added, “What is in the law is that this surcharge will take effect on a date in the future based on an order to be released by the Minister of Finance. We know the Minister of Finance is responsible enough to determine when it is appropriate to do so.”
However, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms did not state whether Mr Edun will announce the implementation of the law on or before January 2026.
Speaking further, Mr Oyedele said the five per cent tax on fuel “is to earmark and dedicate the revenue from this tax to providing transport infrastructure that can reduce the cost of transportation items and logistics and overall reduce inflation for Nigerians.”
The report on the possible implementation of Mr Tinubu’s new tax law by January 2026 has sparked reactions among Nigerians, many of whom condemned the Tinubu-led government for imposing more taxes on citizens amid economic hardships.
Peter Obi, former Anambra governor and Labour Party chieftain, faulted the new tax law, stating, “Nigerians will pay a five per cent tax when buying their everyday fuel or diesel at a time when millions can hardly even afford the cost of transportation.”
