No Immediate Plan to Implement 5% Petroleum Tax- Wale Edun

By Aremu Toyeebaht

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has assured Nigerians that there are no immediate plans to implement the proposed five per cent tax on petroleum products.

Speaking in Abuja on Tuesday, Edun explained that while the levy is part of a new tax administration framework scheduled to take effect from January 1, 2026, its enforcement will only follow due legal and administrative processes.

The minister further clarified that the surcharge is not a fresh policy but a long-standing provision first introduced under the Federal Road Maintenance Agency (FERMA) Act of 2007. “This is not a new tax. It has been part of the law since 2007. What we are doing is reviewing implementation within the framework of ongoing tax reforms,” Edun said.

The clarification follows rising public concerns over the proposed levy, with many citizens fearing additional financial strain amid the current economic challenges. On Monday, the Trade Union Congress (TUC) outrightly rejected the policy, describing it as “reckless” and an unnecessary economic burden on already overburdened Nigerians.

The debate over the proposed fuel tax is expected to continue as the government works toward broad reforms in tax administration and revenue generation.