Adeleke Adebusuyi

Won't take eyes off Finance+Media+Politics+Economics+Compliance. Open to PhD/MSc positions in Media & Communication/Public Policy Studies + a good😂.

[Taiwo Oyedele @taiwoyedele]

𝐓𝐡𝐞 5% 𝐒𝐮𝐫𝐜𝐡𝐚𝐫𝐠𝐞 𝐨𝐧 𝐅𝐮𝐞𝐥: 𝘞𝘩𝘢𝘵 𝘪𝘴 𝘵𝘳𝘶𝘦 𝘢𝘯𝘥 𝘸𝘩𝘢𝘵 𝘪𝘴 𝘯𝘰𝘵?

This note seeks to clarify matters arising regarding the 5% fuel surcharge in the new tax laws. 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.

We outline the frequently asked questions below and provide clarifying explanations.

𝐅𝐫𝐞𝐪𝐮𝐞𝐧𝐭𝐥𝐲 𝐀𝐬𝐤𝐞𝐝 𝐐𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬

𝐐1. 𝐈𝐬 𝐢𝐭 𝐭𝐫𝐮𝐞 𝐭𝐡𝐚𝐭 𝐓𝐢𝐧𝐮𝐛𝐮’𝐬 𝐚𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝 𝐚 5% 𝐬𝐮𝐫𝐜𝐡𝐚𝐫𝐠𝐞 𝐨𝐧 𝐟𝐮𝐞𝐥?

A1. No. The surcharge is not new. It already exists under the Federal Roads Maintenance Agency (Amendment) Act, 2007 (FERMA Act). The new Tax Act only restates it for harmonisation and transparency. Hence, it was not part of the original tax reform bills submitted by the president to the National Assembly.

𝐐2. 𝐃𝐨𝐞𝐬 𝐭𝐡𝐢𝐬 𝐦𝐞𝐚𝐧 𝐭𝐡𝐞 𝐬𝐮𝐫𝐜𝐡𝐚𝐫𝐠𝐞 𝐰𝐢𝐥𝐥 𝐜𝐨𝐦𝐦𝐞𝐧𝐜𝐞 𝐢𝐧 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 2026 𝐰𝐡𝐞𝐧 𝐭𝐡𝐞 𝐧𝐞𝐰 𝐭𝐚𝐱 𝐥𝐚𝐰𝐬 𝐭𝐚𝐤𝐞 𝐞𝐟𝐟𝐞𝐜𝐭?

A2. No. 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.

𝐐3. 𝐖𝐢𝐥𝐥 𝐭𝐡𝐞 𝐬𝐮𝐫𝐜𝐡𝐚𝐫𝐠𝐞 𝐚𝐩𝐩𝐥𝐲 𝐭𝐨 𝐚𝐥𝐥 𝐟𝐮𝐞𝐥 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬?

A3. No. Several energy products used by households are exempt. This includes household kerosene, cooking gas (LPG), and compressed natural gas (CNG). Clean and renewable energy products are also excluded to align with Nigeria’s energy transition agenda.

𝐐4. 𝐖𝐡𝐲 𝐧𝐨𝐭 𝐚𝐛𝐨𝐥𝐢𝐬𝐡 𝐭𝐡𝐞 𝐜𝐡𝐚𝐫𝐠𝐞, 𝐠𝐢𝐯𝐞𝐧 𝐭𝐡𝐞 𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐡𝐚𝐫𝐝𝐬𝐡𝐢𝐩 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐫𝐢𝐬𝐤 𝐨𝐟 𝐡𝐢𝐠𝐡𝐞𝐫 𝐢𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧?

A4. 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.

𝐐5. 𝐖𝐡𝐲 𝐜𝐚𝐧’𝐭 𝐬𝐚𝐯𝐢𝐧𝐠𝐬 𝐟𝐫𝐨𝐦 𝐟𝐮𝐞𝐥 𝐬𝐮𝐛𝐬𝐢𝐝𝐲 𝐫𝐞𝐦𝐨𝐯𝐚𝐥 𝐛𝐞 𝐮𝐬𝐞𝐝 𝐢𝐧𝐬𝐭𝐞𝐚𝐝?

A5. 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.

𝐐6. 𝐈𝐬𝐧’𝐭 𝐭𝐡𝐢𝐬 𝐚𝐭 𝐨𝐝𝐝𝐬 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐫𝐞𝐟𝐨𝐫𝐦 𝐨𝐛𝐣𝐞𝐜𝐭𝐢𝐯𝐞 𝐨𝐟 𝐫𝐞𝐝𝐮𝐜𝐢𝐧𝐠 𝐭𝐚𝐱𝐞𝐬 𝐚𝐧𝐝 𝐞𝐚𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐛𝐮𝐫𝐝𝐞𝐧 𝐨𝐧 𝐜𝐢𝐭𝐢𝐳𝐞𝐧𝐬?

A6. Not at all. 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.

𝐐7. 𝐖𝐡𝐲 𝐧𝐨𝐭 𝐣𝐮𝐬𝐭 𝐚𝐦𝐞𝐧𝐝 𝐭𝐡𝐞 𝐅𝐄𝐑𝐌𝐀 𝐀𝐜𝐭 𝐭𝐨 𝐫𝐞𝐦𝐨𝐯𝐞 𝐭𝐡𝐞 𝐬𝐮𝐫𝐜𝐡𝐚𝐫𝐠𝐞?

A7. 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.

- 𝑷𝒓𝒆𝒔𝒊𝒅𝒆𝒏𝒕𝒊𝒂𝒍 𝑭𝒊𝒔𝒄𝒂𝒍 𝑷𝒐𝒍𝒊𝒄𝒚 & 𝑻𝒂𝒙 𝑹𝒆𝒇𝒐𝒓𝒎𝒔 𝑪𝒐𝒎𝒎𝒊𝒕𝒕𝒆𝒆

[Adeleke Adebusuyi @SaintLakes]

@Nig_Farmer Pigs, all day long

[Adeleke Adebusuyi @SaintLakes]

@winexviv Congratulations to her. She's a strong beacon of hope to everyone hoping to travel that route never to give up!

[Adeleke Adebusuyi @SaintLakes]

@Nig_Farmer Hmmmm! I feel every bit of this. May God bless the efforts of Nigerian farmers 🙏

[Adeleke Adebusuyi @SaintLakes]

@toluwaniyi_ Check the profile of their Coach... A certain Manuel Pellegrini...

[Adeleke Adebusuyi @SaintLakes]

@Ifop2010 @DeeOneAyekooto @hychief With this multiplication of 'vawulence'... I strongly doubt

[Adeleke Adebusuyi @SaintLakes]

@DrJoeAbah Thank you Doc.

[Adeleke Adebusuyi @SaintLakes]

@PeterObi Apt! I absolutely agree with you, Sir.

[Adeleke Adebusuyi @SaintLakes]

@toluwaniyi_ Lati ibo sí'bo🤨

[B.I.M.Y.D.G.R.E.A.T @bimyrocky04]

After all the noise and the ovations of men, it will come down to You and me. You, my friend, my peace and my joy, but also my Lord and Judge.

May I be at peace in your judgment as I am in your mercy. Amen.

[Adeleke Adebusuyi @SaintLakes]

@bimyrocky04 Very deep and thoughtful words here! Amen🙏

[Adeleke Adebusuyi @SaintLakes]

@ti_toolu_ 🤣🤣🤣🤣

[Sir J (J9) @SirJarus]

Please don’t!

That your younger sister that used to sneak to bring food for you, that your kid brother that was usually sent by your parents to queue in bank to transfer money to you in school, that your elderly trader sister that used to add bournvita and garri to your bag when going to school.

Please don’t forget them when things become soft for you.

[Sir J (J9) @SirJarus]

That your dropout aunt that closed her shop and spent two nights with your mum in hospital when she was on admission.

They are more deserving of your generosity than Internet strangers.

[BudgIT Nigeria @BudgITng]

🗣️🗣️Dear Nigerians,

Let’s take a moment to celebrate excellence in governance, shall we?

🏆 Best Use of N10 Million (Twice!) goes to the Youth Ministry @fmydNG, which paid one man N10 million twice to ‘Invite 50’ Youths to President @officialABAT first Anniversary. Because clearly, RSVP costs money—a lot of it. 💰

🏆Most Entertaining Governors: State Governors selflessly spent N968 billion on entertainment.

📌A College of Fisheries in Niger State spent N917 million in March 2024 for tricycles and security vehicles in Lagos and Ogun.

Oh, and a round of applause for Nigerian MDAs that paid over N159 billion into private accounts in six years.

Guess whose money funds these? And you still won't #AskQuestions?

Visit https://t.co/3YLuqJOFhS today.

[Adeleke Adebusuyi @SaintLakes]

@FolasadeTheresa @hychief @Ifop2010 Ojú ria a máa r'íre oooo!

[David Offor @DavidsOffor]

Prof Yemi Osinbajo did a great justice in his book review of the autobiography of IBB, he was able to dissect so many parts of the book

The book will be an interesting one to read!!

[Adeleke Adebusuyi @SaintLakes]

@DavidsOffor Spellbinding review!!

[Adeleke Adebusuyi @SaintLakes]

@DrJoeAbah High risk of PR Merchants, and the fickle nature of crowd-emotions make opinion poll an extremely subjective metric in measuring performance in governance.

[Wale Adedayo 🌍🔰 @Mario9jaa]

I dislike conspiracies but the Chief of Defense Staff has been questioning international agencies for their contributions towards insecurity in Nigeria long before now.

Why was he denied a visa into Canada? Can’t say yet but this confidence, we need like mad🥂🥂