The Chairman of the Presidential Tax Reform Committee, Taiwo Oyedele, has clarified that the proposed N500 levy on every N10,000 worth of fuel purchase will not take effect in January 2026 as widely speculated.
Oyedele, in a video message released on Friday, explained that the commencement date will be announced later by the Minister of Finance.
“What we have is that there was a law enacted some years back with a surcharge on fuel under the FERMA Act. This is a provision that is in the new tax law and it does not take effect as of January 2026,” he said.
He added: “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, and we do know that the Minister of Finance is responsible enough to determine when it is appropriate to do so.”
The clarification comes amid public backlash and calls for suspension of the levy after reports suggested it would commence in January 2026.
Speaking on the purpose of the levy, Oyedele explained that the revenue is intended to fund transport infrastructure across the country.
“The intention is to earmark and dedicate the revenue from this tax into providing transport infrastructure that can reduce the cost of transporting items, logistics, and overall bring down inflation for the Nigerian people,” he said.