Key points

• Edun says government has no immediate plan for 5% fuel tax.

• Oyedele defends surcharge as vital for fixing failing roads.

• New tax reform laws are set to begin in January 2026.

The Federal Government has assured Nigerians that the 5 percent fuel tax will not take effect anytime soon.

Finance Minister Wale Edun told reporters in Abuja that there is no plan to enforce the levy now.

He stressed that the government understands the pressure citizens face.

Instead of raising taxes, officials are focusing on blocking waste, improving revenue systems, and cutting loopholes.

Levy will support road repairs

Tax reform committee chairman Taiwo Oyedele explained that the levy is designed to fund road repairs.

According to him, poor road conditions already force Nigerians to spend more on transport and goods.

Out of about 200,000 kilometers of roads nationwide, only 60,000 are in good shape. “Bad roads increase the cost of living. Fixing them will help reduce transport costs,” Oyedele said.

He added that the levy existed before but was not used because fuel subsidies made it irrelevant.

Now that subsidies are gone, the money can create a road fund. However, officials will only activate it when the economy is stable.

New tax rules take effect in 2026

Oyedele also noted that new tax laws will begin in January 2026. Large companies will see their corporate tax rate fall from 30 percent to 25 percent.

Smaller businesses with less than N100 million turnover will pay no corporate tax.

He gave assurance that any fuel levy collected will go strictly to road repairs. Over time, this could lower transport costs and ease inflation pressures.