796 BILLION NAIRA ANNUAL REVENUE TARGETED FROM 5% PETROL SURCHARGE BY THE FEDERAL GOVERNMENT

The Nigerian government expects to collect about N796 billion annually through a five percent surcharge on both domestically produced and imported premium motor spirit.

This surcharge on refined petroleum products is part of the Nigeria Tax Administration Act, one of four tax reform bills signed into law by President Bola Tinubu on June 26, 2025.

The policy has drawn criticism from consumers, who highlight that the government recently removed fuel subsidies and is now introducing an additional five percent surcharge on fuel, without adequately addressing the tough economic realities faced by many Nigerians.

The surcharge targets fossil fuel products supplied or produced within Nigeria, including diesel, kerosene, aviation fuel, and compressed natural gas. However, it excludes renewable energy sources, household kerosene, cooking gas, and compressed natural gas intended for domestic use.