₦500 Fuel Levy Will Not Take Effect in January 2026 — Implementation Awaits Ministerial Directive, Says Tax Reform Chairman

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has clarified that the proposed ₦500 fuel levy will not automatically take effect on January 1, 2026. He explained that while the levy is included in the new tax legislation, its implementation is subject to a formal directive from the Minister of Finance, which has not yet been issued.

The clarification comes in response to growing public concern and misinformation suggesting that the levy would begin at the start of 2026. Oyedele emphasized that Nigerians should not expect the fuel surcharge to be enforced unless and until the appropriate ministerial order is made.

In his words, “While the provision for the fuel surcharge exists in the law, it will not take effect until the Minister of Finance sets a commencement date.”

The fuel levy is part of the government’s broader plan to raise funds specifically for improving transportation infrastructure. The revenue generated is expected to be channeled into road repairs, bridge maintenance, and logistics development aimed at easing the movement of goods and reducing transportation-related costs across the country.

Oyedele noted that the government is being deliberate about the timing of the fuel levy to ensure that it does not place undue hardship on Nigerians. He reiterated that no new tax will be implemented without careful planning, stakeholder engagement, and an enabling economic environment.

In contrast to the fuel levy, several other tax reforms are scheduled to commence on January 1, 2026. These include exemptions from Value Added Tax (VAT) on basic food items, medicines, and educational materials, as well as income tax relief for small businesses and low-income earners.

The reforms aim to reduce the financial burden on vulnerable groups while expanding the country’s tax base through improved compliance and fairness in the system.

The initial misunderstanding about the fuel surcharge had sparked criticism and concern from the public, especially given current economic challenges. Oyedele addressed these concerns by assuring Nigerians that the government remains committed to a phased and transparent approach in executing tax reforms.

He called on citizens to disregard false reports about the levy taking effect in January 2026 and to await official communication from the Ministry of Finance regarding any future implementation date.