The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has reassured Nigerians that the Federal Government remains firmly committed to macroeconomic stability, private sector-led growth, and transparent fiscal management.
Speaking at a media briefing in Abuja, Mr. Edun addressed recent concerns surrounding the 5% fuel surcharge referenced in the Nigeria Tax Administration Act, 2025. He clarified that the surcharge is not a new tax, but one that predates the current administration, having first been introduced under the Federal Roads Maintenance Agency (FERMA) Amendment Act of 2007 to provide sustainable financing for road infrastructure. Of the revenues, 40% is allocated to FERMA and 60% to State Road Maintenance Agencies.
He explained that its inclusion in the new Act is not to impose a fresh levy but to harmonise existing tax provisions under a modern, transparent framework.
Mr. Edun described the Nigeria Tax Administration Act, signed into law by President Bola Ahmed Tinubu in June 2025, as the country’s most ambitious and comprehensive tax reform to date. The Act consolidates multiple tax laws into a single legal instrument, eliminates over 50 overlapping taxes, and modernises revenue administration to improve compliance, efficiency, and investor confidence.
“The Act will not take effect until 1st January 2026,” the Minister stated, adding that this transition period allows for institutional restructuring, capacity building, and wide-ranging consultations with key stakeholders, including subnational governments. He also revealed ongoing efforts to harmonise tax processes across Ministries, Departments, and Agencies, alongside the design of a framework for the Tax Ombudsman to strengthen taxpayer protection.
“This is not just another law; it is a catalyst for growth,” Mr. Edun emphasised. “Its implementation will be carefully phased to ensure minimal disruption while maximising benefits for Nigerians.”
Reaffirming the Tinubu administration’s economic vision, Mr. Edun highlighted two central priorities: the creation of a stable macroeconomic environment to unlock investment, drive productivity, and generate jobs; and the strengthening of government savings to fund strategic investments in education, healthcare, infrastructure, and technology.
While acknowledging current economic pressures, the Minister assured Nigerians that the administration remains sensitive to prevailing conditions. He reiterated that the government’s reforms are designed to simplify taxes, block leakages, strengthen compliance, and build an economy that works for all citizens.
“Macroeconomic stability is our top priority,” Edun said. “Every policy decision is guided by the need to ease pressures on households and businesses while laying the foundations for long-term prosperity.”