Taiwo Oyedele, Chairman of the Presidential Tax Reform Committee, has clarified that the proposed N500 levy on every N10,000 fuel purchase will not begin in January 2026 as previously speculated. The actual start date will be announced later by the Minister of Finance.
The proposal had sparked widespread criticism, with many Nigerians calling for its suspension amid rumours that it would take effect early next year.
In a video statement released on Friday, Oyedele explained that the levy is part of a provision in the new tax law, building on a surcharge previously enacted under the FERMA Act. He emphasized that the surcharge “does not take effect as of January 2026.”
“What is in the new tax is that these fuel surcharges will take effect on a date in the future based on an order to be released by the Minister of Finance,” Oyedele said, adding, “We know that the Minister of Finance is responsible enough to determine when it is appropriate to do so.”
On the purpose of the levy, Oyedele noted that the revenue will be specifically earmarked for transport infrastructure projects aimed at reducing logistics costs and overall inflation. “The intention is to dedicate the revenue from this tax to providing transport infrastructure that can reduce the cost of transporting items, logistics, and overall bring down inflation for the Nigerian people,” he said.
