Wale Edun, minister of finance and coordinating minister of
the economy, spoke at a news conference in Abuja on Tuesday.

The minister’s response comes after several concerns about
the implementation.

On September 7, the Trade Union Congress of Nigeria (TUC)
rejected the federal government’s proposed 5 percent tax on petroleum products,
describing it as “economic wickedness” against already overburdened Nigerians.

Speaking on the tax, Edun said the surcharge was a
long-standing provision first introduced in 2007 under the Federal Road
Maintenance Agency (FERMA) Act, and not a new tax measure created by President
Bola Tinubu administration.

According to the minister, the surcharge’s inclusion in the
2025 Act is part of efforts to consolidate and harmonise existing laws for
clarity and ease of compliance.

“It is important to make this distinction, the inclusion of
the surcharge in the 2025 Nigeria Tax Administration Act does not mean an
automatic introduction of new tax. It doesn’t mean fresh taxation
automatically,” Edun said.

The minister said the new law would not take effect until
January 1, 2026, and even then, any implementation of the surcharge would
require a formal commencement order by the minister of finance, published in an
official gazette.

“There is a whole formal process involved, and as of today,
no order has been issued, none is being prepared and there is no plan. There is
no immediate plan to implement any surcharge,” he said.

Edun added that the government’s broader tax reform effort
is a long-overdue overhaul of the country’s fragmented tax system.

He said that the tax administration act is one of four
legislative instruments passed to improve transparency, simplify compliance for
individuals and businesses, and modernise revenue collection.

“This is a transformational legal document, ” the minister
said.

Edun added that the process of preparing the reforms
followed years of consultation, technical work and collaboration.

‘IMPLEMENTATION WILL TAKE SIGNIFICANT PREPARATION’

The minister said moving from legislation to implementation
would also involve significant preparation, including institutional
realignment, capacity building, and public sensitisation.

He said amid heightened public scrutiny and economic
pressure on households, the present administration remains committed to
macroeconomic stability and private-sector-led growth.

Also, Edun said the goal of the tax reforms was not to
impose new burdens on Nigerians, but to create a more transparent and effective
tax system that curbs leakages, boosts efficiency, and fosters investor
confidence.

“This government is fully aware of the economic pressures of
the time and will not take decisions that will make things even more
burdensome,” he said.

“Our priority is to strengthen tax governance, block revenue
leakages, and improve efficiency rather than just levy new taxes, charges, and
costs.”

The minister said that the ongoing macroeconomic reforms has
begun to yield results, improving investor sentiment and recent affirmations
from development partners and international rating agencies.

He said that there would be need for proper communication
and implementation of the new tax framework in the months ahead.

“As you know with all policies, once the policy is passed
into law, the next step is implementation,” he said.

Edun added that “there will be publicity, sensitisation,
education and information on the new tax law”.