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No, Tinubu government has not introduced new fuel tax starting January 2026

Fatimah Quadri
Fatimah Quadri
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Screenshot of the claim; INSERT Misleading Verdict
Screenshot of the claim; INSERT Misleading Verdict

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A claim that under a new tax law, Nigerians would pay N500 as tax on every 10,000 spent on fuel has been circulating on the internet.

The claim has been circulating on the internet since the announcement of the 5 per cent tax on petrol and diesel.

The regulation requires that the surcharge be applied to every supply or sale of refined fossil fuel products in Nigeria, whether locally produced or imported, with the money collected at the point of purchase. Cleaner fuels, such as renewable energy sources, household kerosene, cooking gas (LPG), and compressed natural gas (CNG), are exempt.

READ MORE: Misleading claims on new personal income tax act circulates online

A post on X by Naija Pr retrieved by our researcher reads:

Nigerians will pay N500 as tax on every N10,000 they spend on petrol consumption starting from January 2026 under the new tax law.
Since the post’s inception on Wednesday, September 3, 2025, it has garnered over four million views, 21,000 likes, 6,200 reposts, and 3,400 comments.
While the claim of the 5 per cent tax is undeniable, there are doubts as to whether this is a new tax law. Due to the Veracity of the claim, The FactCheckHub decided to fact-check it.

CLAIM

The new tax law introduces a 5 per cent tax on petrol purchases from January 2026.

THE FINDINGS

Findings by The FactCheckHub show that the claim is MISLEADING!

Screenshot of the claim; INSERT Misleading Verdict
Screenshot of the claim; INSERT Misleading Verdict

The levy originates from the newly enacted Nigeria Tax Administration Act, one of four tax reform bills signed into law by President Bola Tinubu on June 26, 2025.

According to the Act, a five per cent surcharge will be applied to chargeable fossil fuel products produced or supplied in Nigeria. The law stipulates that: the surcharge must be collected at the point of sale; it will be calculated based on the retail price of petrol and diesel; the Minister of Finance must formally announce its commencement date through an official Gazette; and it will not apply to kerosene, LPG, CNG, or renewable energy.

The surcharge is not entirely new — a similar provision is contained in the Federal Roads Maintenance Agency (FERMA) Act of 2007, which introduced a fuel levy to fund road maintenance.

According to the substituted Section 14 of the Principal Act, the Fund of the Agency is to be financed through several sources: a take-off grant and annual subventions from the Federal Government; loans and grants from federal, bilateral, and multilateral agencies; internally generated revenues such as rents, fees, and service charges; toll gate collections; proceeds from road concessions; and other sums accruing to the Agency.

It also provides for a 5 per cent user charge on the pump price of petrol and diesel—40 per cent of which is allocated to FERMA and 60 per cent to State Road Maintenance Agencies—as well as international vehicle transit charges determined by the Minister of Transportation

In essence, the Tinubu administration has not introduced a new tax, but rather reactivated an existing provision that had long remained unenforced.

The ICIR also reports that the Minister of Finance, Wale Edun, clarified that the surcharge is not new, while stating that it is not commencing soon.

THE VERDICT 

The claim that a new tax law introduces 5 per cent on petrol purchases from January 2026 is misleading; the surcharge is not new, and there is currently no date for its commencement.

Fact-checker at The FactheckHub | fquadri@icirnigeria.org |  + posts

Seasoned fact-checker and researcher Fatimah Quadri has written numerous fact-checks, explainers, and media literacy pieces for The FactCheckHub in an effort to combat information disorder. She can be reached at sunmibola_q on X or fquadri@icirnigeria.org.

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