The federal government has explained that the proposed five per cent surcharge on fossil fuel is a dedicated fund to finance road infrastructure and maintenance.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, said on Saturday that the measure would enhance road safety, reduce logistics costs, and improve economic efficiency.
He stressed that the surcharge, aligned with international practice, would provide sustainable funding for Nigeria’s chronic road infrastructure gap. Over 150 countries currently impose similar levies on fuel.
Oyedele clarified that the surcharge, restated in the Nigeria Tax Act 2025, was not an immediate policy but would only take effect when the Minister of Finance issues an official gazette order.
He assured that the levy would not apply to household energy products such as kerosene, cooking gas (LPG), and compressed natural gas (CNG). Clean and renewable energy sources are also exempt.
