Fuel Surcharge Looms as Nigeria’s New Tax Acts Ripple Across Sectors

Brace for pricier pit stops. A 5% fossil-fuel surcharge baked into the 2025 Nigeria Tax Administration Act could slap an extra ₦45 onto every litre of petrol starting January 2026 if pump prices hold steady at ₦900, Daily Trust reports.

The levy targets all refined petroleum products, from petrol and diesel to jet-A1, while sparing household kerosene, LPG and other renewables. Collection kicks in at the moment of “supply, sale, or payment, whichever occurs first.” Implementation now waits on a green light from Finance Minister Wale Edun.

Industry watchers say the timing stings. Fuel subsidies are gone, and inflation is already squeezing wallets. Yet officials argue the surcharge is part of a broader push to nudge Nigerians toward cleaner energy and shore up revenue. “A surcharge is imposed… and shall be collected at the time a chargeable transaction occurs,” the Act states.

Tax professionals are equally torn: applauding clearer rules, but worrying about enforcement headaches at thousands of filling stations nationwide.

Around the Tax World

• Free-Zone Friction: Operators of Special Economic Zones want “constructive dialogue” on new provisions they say undermine Nigeria’s free-zone advantage, according to The Nation (think fresh taxes even on firms that never sell into customs territory).
• Aviation Anxiety: Airline executives fear the reforms could revive VAT on tickets and customs duties on aircraft parts, potentially slowing an already fragile sector, The Guardian writes.
• Sin Tax for Health: Excise revenues from alcohol, tobacco and sugary drinks may soon be earmarked for healthcare instead of the federation account, committee chair Taiwo Oyedele told BusinessDay.
• e-Invoicing 3.0: FIRS certified eTranzact to roll out national electronic invoicing, tightening real-time oversight of VAT and withholding tax flows, Business AM Live reports.

By the Numbers

Prime Number: ₦45, the extra cost per litre of petrol once the 5% fossil-fuel surcharge lands, assuming a ₦900 pump price (Daily Trust).

Looking Ahead

All eyes now turn to Minister Wale Edun, whose signature will lock in the fossil-fuel surcharge’s January 2026 start date, and to ongoing stakeholder talks that could tweak zone, aviation and health-funding provisions before the rollout clock hits zero.