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5% Fuel Surcharge: What Nigerians Should Know

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File Copy: Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele

Confusion has erupted online over a supposed 5% fuel surcharge under Nigeria’s new tax laws, with many fearing a sudden increase in fuel prices.

The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Saturday through a post on X, clarified what is fact and what is fiction.

The controversy arises from the recent passage of the Nigeria Tax Act, 2025, which consolidates and harmonises previous tax laws.

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Some social media posts suggested that President Bola Tinubu’s administration had introduced a new surcharge on fuel, sparking public concern.

Oyedele clarified: “The charge is not a new tax introduced by the current administration. The provision already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007. Its restatement in the new Tax Act is for harmonisation and transparency rather than immediate implementation.”

According to Oyedele, the surcharge is meant to fund road infrastructure, an area that has historically suffered from underfunding.

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Over the years, Nigeria’s road network has faced chronic maintenance challenges, resulting in potholes, travel delays, and higher vehicle operating costs.

Oyedele further noted that the surcharge is intended to create a dedicated, predictable funding source for road construction and maintenance.

READ ALSO:Nigerian Lawmakers Approve Tinubu Tax Reform Bills

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Oyedele addressed key questions raised by citizens:

Will the surcharge start automatically in January 2026?

No. It will only take effect when the Minister of Finance issues an order published in the Official Gazette:

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“The surcharge does not take effect automatically with the new tax laws. It will only commence when the Minister of Finance issues an order published in the Official Gazette as stated under Chapter 7 of the Nigeria Tax Act, 2025. This safeguard ensures careful consideration of timing and economic conditions before implementation,” Oyedele stated.

Does it apply to all fuels?

No. Household energy products such as kerosene, LPG, and CNG are exempt. Clean and renewable energy products are also excluded to support Nigeria’s energy transition agenda.

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Why maintain the surcharge amid economic hardship?

Oyedele explained that the fund is meant as a dedicated mechanism for road maintenance:

READ ALSO:FG Sues Binance For $81.5bn In Economic Losses, Back Taxes

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He said, “The surcharge is designed as a dedicated fund for road infrastructure and maintenance. If implemented effectively, it will provide safer travel conditions, reduce travel time and cost, lower logistics costs and vehicle maintenance expenses, which will benefit the wider economy. This practice is virtually universal with over 150 countries imposing various charges ranging between 20% to 80% of fuel products to guarantee regular investment in road infrastructure.”

Could subsidy savings cover road funding instead?

The Chairman of theCommittee on Fiscal Policy and Tax Reforms said: “While subsidy savings will provide some funding, they are insufficient to meet Nigeria’s huge and recurring road infrastructure needs among other public finance needs. A dedicated fund ensures reliable and predictable financing for roads, complementing the budget and ensuring roads are not left underfunded.”

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Does this contradict the tax reform objective of easing citizens’ burden?

READ ALSO:Tax Reform Bills Offer 55% To States In New Sharing Formula

Oyedele reassured: “The reforms have already reduced multiple taxes and removed or suspended several charges that directly affect households and small businesses, such as VAT on fuel, excise tax on telecoms, and the cybersecurity levy. By harmonising earmarked taxes, government is reducing duplication and ensuring a more efficient tax system.”

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Why not remove the surcharge entirely?

He clarified: “Yes, the surcharge has been removed from the FERMA Act and incorporated into the new tax laws which are designed to provide a forward-looking legal framework for Nigeria. Keeping this provision in place within a harmonised legal framework ensures Nigeria is prepared to address critical challenges, such as sustainable road financing and even climate change impacts. It is not about immediate implementation, but to ensure the law provides a clear and effective framework for when it becomes necessary in the future.”

In summary, Oyedele stressed that the surcharge is not new, not immediate, and selectively applied. Its inclusion in the law is about transparency, preparedness, and sustainable funding for Nigeria’s roads, and it aims to address long-standing gaps in infrastructure financing.
(PUNCH)

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JUST IN: ASUU Issues Ultimatum To FG Over Unresolved Issues

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The Academic Staff Union of Universities has issued a 14-day ultimatum to the Federal Government of Nigeria.

The union made the decision following a National Executive Council meeting held on Sunday at the University of Abuja.

The national president of ASUU, Prof. Chris Piwuna made this known in a copy of strike action he personally signed and made available to our correspondent in Abuja.

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At the National Executive Council meeting held at the University of Abuja on the 28th of September, 2025, the Union decried the neglect of the University system and the government’s consistent refusal to heed to its demands.

READ ALSO:ASUU Threatens To Due JAMB Over UTME Mass Failure

“Accordingly, ASUU has given the Federal Government of Nigeria an Ultimatum of fourteen (14) days within which to address these issues. If at the end of the fourteen-day ultimatum, the Federal Government fails to address these issues, the Union may have no option but to, first, embark on a two-week warning strike and thereafter, a total and indefinite strike.”

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Recall that the Federal Government through the Federal Ministry of Education set up a committee headed by the permanent secretary of the ministry, Abel Enitan to look into a proposal for ASUU in a bid to ensure stability across universities.

At the time of filing this report, the committee has yet to make any decision known to the public.

ASUU’s core demands remain largely unchanged: renegotiation of the 2009 agreement, adequate revitalisation funds for univer­sities, settlement of outstanding salary arrears, and sustainable funding mechanisms.

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JUST IN: NNPC, NUPRC, NMDPRA Shut As PENGASSAN Begins Strike

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The nationwide strike declared by the Petroleum and Natural Gas Senior Staff Association of Nigeria on Monday paralysed operations at key oil and gas regulatory institutions, including the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The industrial action, which followed the weekend directive by the union’s National Executive Council, saw members across the country withdrawing their services, effectively shutting down critical agencies that drive Nigeria’s oil and gas industry.

It was observed that at the NUPRC headquarters in Abuja, the main gate was firmly locked, leaving several employees stranded outside the premises. Security operatives on duty confirmed that no staff were allowed entry, in line with the strike directive issued by the union.

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Similarly, activities at the NMDPRA headquarters in the busy Central Business District were completely grounded as workers fully complied with the industrial action.

READ ALSO:Dangote Hits Out At PENGASSAN, Says Union ‘Serial Saboteurs, Serving Oligarchs’

Confirming the situation, the PENGASSAN Chairman in NMDPRA, Tony Iziogba, told The PUNCH that the union had achieved “100 per cent compliance,” effectively restricting access to staff and visitors.

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He added that his colleagues had also enforced 100 per cent compliance at the NNPCL and other relevant agencies.

PENGASSAN said the strike became inevitable after the alleged wrongful dismissal of about 800 workers at the Dangote Petroleum Refinery.

The union’s directive to halt crude oil and gas supplies to the Dangote Petroleum Refinery has sent shockwaves through the energy sector, with oil marketers warning of severe disruptions in fuel distribution. This move is expected to choke the domestic market, driving up demand and prices.

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READ ALSO:JUST IN: PENGASSAN Strike May Trigger Nationwide Blackout, Thermal Plants Shut Down

On Sunday, PENGASSAN announced a nationwide strike, instructing all its members in various offices, companies, institutions, and agencies to cease all services starting at 12:01 am on Monday, September 29, 2025.

The union also directed members stationed in various field locations to down tools from 6:00 am on Sunday, September 28, and commence a round-the-clock prayer vigil.

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In a strongly worded resolution signed by PENGASSAN General Secretary, Lumumba Okugbawa, the union accused the refinery of violating Nigerian labour laws and International Labour Organisation conventions by sacking workers for joining the union. It alleged the dismissed workers had been replaced by foreigners.

READ ALSO:PENGASSAN Reacts As Dangote Refinery Misses Production Deadline

All processes involving gas and crude supply to Dangote Refinery should be halted immediately,” the resolution declared. “All IOC (International Oil Companies) branches must ramp down gas production and supply to Dangote Refinery and petrochemicals.”

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The development has heightened fears of fuel scarcity and blackouts, as NNPC remains the sole importer of petrol while the midstream and downstream authority regulates supply and distribution. Similarly, NUPRC is responsible for monitoring crude production and enforcing gas supply obligations to power plants.

All eyes are now on Monday’s emergency meeting convened by the Minister of Labour. Whether dialogue can restore calm or whether Nigeria plunges deeper into crisis may depend on the willingness of both sides to compromise.

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‘We Cure Madness With Madness’: Five Things To know About Taye Currency

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The name ‘Taye Currency’ has continued to trend on social media following the Fuji music artiste’s performance at the coronation of the 44th Olubadan of Ibadan, Oba Rashidi Adewolu Ladoja, on Friday.

Taye Currency, during his performance at the coronation event which took place at Mapo Hall in Ibadan, rendered a line in Yoruba, “Were la fi n wo were,” which translates to “we cure madness with madness.”

The line, which seems not to have sat well with many Nigerians, particularly those of Yoruba heritage, has continued to generate a lot of criticism, with many opining that such lyrics were not befitting for the occasion, which had in attendance dignitaries including President Bola Ahmed Tinubu, governors, ministers, traditional rulers, and other crème de la crème of society.

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Reacting to the development, the Olu of Kemta Orile in Odeda Local Government Area of Ogun State, Oba Adetokunbo Tejuosho, criticised Taye Currency for what he described as “classless and unbefitting lyrics.”

According to him, the musician failed to accord the coronation its due respect, describing his lyrics as unbefitting of the sacred ceremony.

READ ALSO:Ogun Monarch Slams Taye Currency Over Performance At Olubadan Coronation

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He said, “The throne of our ancestors is not a stage for mockery, nor the coronation of a great monarch a subject for careless entertainment.

“Kingship is sacred, adorned with honor and guarded by tradition. It demands reverence, dignity, honor, class and the utmost respect from all who stand in its presence.

“Listening to the musician (Taye Currency), who was invited to render music before the Crown, as a matter of fact before the entire world, to serenade the audience and sing in a way to express admiration, singing songs like (were lafi n wo were) We use madness to cure madness.

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“Such lyrics were classless and unbefitting of such occasions, it is insulting to the sacredness of the gathering.”

While Taye Currency is well known among Fuji music lovers, especially those from Ibadan, the Oyo State capital, his performance at the Olubadan coronation has made people want to know more about him.

READ ALSO:BREAKING: Ladoja Crowned 44th Olubadan, Set To Receive Staff Of Office

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In this article, Tribune Online takes a look at five things to know about the trending Fuji musician.

1. Full Name and Age

His full name is Taye Akande Adebisi. Apart from his popular stage name, Taye Currency, he is also known as ‘Apesin.’ He celebrated his 50th birthday on December 17, 2024.

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2. Appointment as Special Adviser on Culture and Tourism

Oyo State Governor, Seyi Makinde, appointed him as Special Adviser on Culture and Tourism in 2019 during the governor’s first tenure.

READ ALSO:Olubadan Unveils Economic Plan For Ibadanland

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3. Father of a Lawmaker

In 2019, Taye Currency’s son, Yusuf Oladeni Adebisi, was elected into the Oyo State House of Assembly to represent Ibadan South-West Constituency 1, which earned Taye Currency another nickname, ’Baba Honorable’ (Honourable’s father). He was re-elected in 2023 as a lawmaker on the platform of the Peoples Democratic Party (PDP).

4. Financial Setback

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In April 2025, Taye Currency publicly lamented that he lost N10 million to CBEX, a crypto/investment scheme many now regard as a collapsed Ponzi platform. He explained that he was convinced to invest by close associates, only to see the scheme crumble shortly after.

5. Affiliation with Pasuma

Taye Currency has often maintained that although he never learnt Fuji music from his senior colleague, Wasiu Alabi Odetona, popularly known as Pasuma, whom he first met in 1993, he still considers him a boss.

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