The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified that the recently debated 5% fuel surcharge was not introduced by President Bola Tinubu’s administration, but has been in existence since 2007.

Oyedele explained that the surcharge was first provided for in the Federal Roads Maintenance Agency (Amendment) Act of 2007, and was only restated in the newly enacted Nigeria Tax Act, 2025 for harmonization and transparency.

“The 5% surcharge is not a new tax. It has been part of our laws since 2007,” Oyedele said. “What we have done in the new tax legislation is simply to restate it, so that Nigeria’s tax system is clear, consolidated, and easy to understand.”

He further clarified that while the new tax laws will take effect in January 2026, the surcharge will not commence automatically on that date. Its implementation, according to him, would require a separate commencement order to be issued by the Minister of Finance and published in the Official Gazette.

Oyedele stressed that revenue from the surcharge is earmarked specifically for road infrastructure and maintenance across the country. The funds, he noted, would help improve road safety, reduce travel time, lower logistics costs, and ease the burden of vehicle maintenance for Nigerians.

He also pointed out that certain products, including kerosene, cooking gas (LPG), compressed natural gas (CNG), and other clean or renewable energy sources, would not be affected by the surcharge.

The clarification comes amid public debate over the policy, with critics suggesting the surcharge was a fresh levy introduced by the Tinubu administration.

Government officials have since defended the measure, noting that similar road-user charges are applied in more than 150 countries worldwide.