00:00Lately, across Nigeria, discussions have intensified over the newly introduced 5%
00:06fuel surcharge. The policy has sparked questions and concerns. Here is a breakdown of what it
00:12entails and its possible impacts. So what exactly is this surcharge? In June 2025,
00:20President Bola Amer-Tinobu signed the Nigeria Task Act 2025, which includes a 5% surcharge
00:27on fossil fuels, such as petrol, diesel, aviation fuel, and natural gas. This means that for every
00:35purchase at the pump, 5% will be added at the point of sale. Now, here is something important to note.
00:43This isn't an entirely new idea. The surcharge first appeared under Nigeria's Federal Roads
00:49Maintenance Agency, FEMA, law of 2007, but was never enforced. What the government has done is bring it
00:57back under a new legal framework. Officials say the goal for this is for harmonization,
01:03transparency, and a dedicated fund for road infrastructure and renewable energy.
01:09When does it begin? Not yet. While the chairman of the Presidential Tax Reforms Committee,
01:15Taiwo Oyedele, initially mentioned January 2026, the government has clarified that no date is settled.
01:23Only the Minister of Finance can officially announce the start, and it will be published in the
01:29government's official gazette. Until then, fuel prices remain the same. The question is this,
01:37which products are affected? The surcharge applies to petrol, diesel, aviation fuel, and natural gas.
01:45But households like kerosene, cooking gas, and compressed natural gas are exempted.
01:51The government says this exemption is to support Nigeria's clean energy transition and protect
01:58households from higher costs. So how much money are we talking about? Last year, Nigerians bought
02:06almost 19 billion liters of petrol at an average price of 8.50 naira per liter. If the 5% surcharge had
02:14been in place, the government would have been able to collect nearly 800 billion naira from petrol alone.
02:20When you had diesel and aviation fuel, the figure is much higher. But what does all this mean for you?
02:29Let's break it down to everyday life. Buying 10,000 naira worth of petrol would now cost 10,500.
02:37That's about an extra 50 naira per liter. A civil servant who budgets 50,000 naira monthly for fuel
02:44would need 52,500 instead. Over a year, that's an additional 30,000 naira.
02:52Even airlines will pass the course on its passengers, meaning ticket prices could rise by 10,000 naira or more.
03:01And here is the bigger picture. Once transporters pay more for petrol and diesels, they will increase fares.
03:07Farmers and traders transporting goods will spend more. Eventually, the cost shows up in the market,
03:15in your shopping basket and on your dining table.
03:19Why is the government doing this? Officers argue that the surcharge will ensure steady funding for roads,
03:26reduce vehicle maintenance costs and support renewable energy projects.
03:30They also point out that more than 150 countries already impose similar fuel surcharges,
03:36some as high as 20% to 80%. But critics see it differently.
03:44They warn that Nigerians are already under pressure from subsidy removal and rising inflation,
03:50adding another cost, even a small percentage, risk worsening the cost of living crisis.
03:57For now, Nigerians wait. While the 5% fuel surcharge remains a law on paper,
04:05its true impact will only be clear once implementation begins.
