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The Nigeria Standard
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Myths, facts about the 5% fuel surcharge

by The Nigeria Standard
September 18, 2025
in Business
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Myths, facts about the 5% fuel surcharge
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By ADERONKE ATOYEBI

it’s me again, here to clear the air. I am confident in this government and its vision, so I want to set the record straight. If you have been scrolling through social media or catching the news, you have probably seen people talking about a “five per cent fuel surcharge” . Some say it will hit our pumps in January 2026, while others claim it is a new tax meant to make life harderfor Nigerians.

A fuel surcharge is a small extra charge on fuel, meant for a specific purpose. In this case, it is for our roads and transport infrastructure. The goal is to lower the cost of moving goods and people, ease logistics and ultimately help bring down inflation.

The five per cent surcharge has been around since 2007 under the FERMA Act and its job is to make sure there’s money set aside for fixing and maintaining them. It is not a tax the government can use however it likes, and it is definitely not about immediately taking more from us at petrol stations.

The 2025 Tax Act didn’t create a new surcharge. What it does is modernise it, put it in a clear framework and make it more transparent. This means the law is easier to understand, and everyone knows exactly how the money will be used.

Here’s the thing a lot of Nigerians don’t understand: the five per cent fuel surcharge won’t automatically kick off in January 2026. Before anything happens, the Minister of Finance has to give the official go-ahead, and it has to be published in the official gazette. This means Nigerians have time to plan and families using household fuels like kerosene, cooking gas (LPG), CNG or renewable energy won’t feel any impact.

So, why should we see this as a good step? Over the past two years, this administration has already delivered noticeable improvements on several roads across the country. Highways like the Lagos-lbadan Expressway, the Abuja-Kaduna Road and sections of the Enugu-Onitsha route have seen repairs and upgrades, making travel faster and more comfortable. With the five per cent fuel surcharge, the government can continue this progress and expand it to more states. Some people ask why the government can’t simply use the money saved from fuel subsidies instead. While subsidy savings do help, those funds are already stretched across education, healthcare, security and other urgent national priorities. Having this surcharge means transport infrastructure all over Nigeria has its own dedicated money, so it doesn’t have to compete with other pressing needs and can be spent consistently where it matters most. No need for all the back-and-forth. This five per cent fuel surcharge is simply a way to make our roads and transport systems better and safer for everyone.

With this fund, more roads across the country can be fixed and maintained properly so that drivers, traders and commuters don’t have to struggle with bad roads. Cars will last longer, goods will move faster and our daily journeys to work, school or market will be much easier. It’s a small step today that promises a big difference for Nigerians tomorrow.

Atoyebi, the Technical Assistant on Broadcast Media to the Executive Chairman of the Federal Inland Revenue Service, writes via contact@arabinrinaderonke.com A renewed commitment to retirees is a commitment to the future. It is high time Nigeria treated its wealth of experience not as disposable, but as an indispensable national treasure.

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