In response to mounting public concern over soaring living costs, Nigeria has postponed the implementation of its newly enacted tax legislation to 1 January 2026. The announcement was made today by Finance Minister Wale Edun during a press briefing in Abuja.

The legislation in question includes a notable 5% surcharge on fuel products such as petrol and diesel. However, Edun clarified that this is not a novel tax, but rather a revival of provisions that date back to a 2007 law. Its inclusion in the recent Nigeria Tax Act is aimed at harmonizing and clarifying tax policy while enhancing revenue collection.

Edun emphasized the government’s sensitivity to Nigeria’s current economic climate—marked by significant reform efforts including the removal of fuel and electricity subsidies and multiple devaluations of the naira—stating, “The order will not be issued immediately. Government is aware of the economic situation of the times and would not deliberately increase the burden on Nigerians.”

Since assuming office in 2023, President Bola Tinubu has pursued aggressive fiscal reforms to bolster Nigeria’s slumping economic performance. However, these reforms have contributed to what analysts describe as the most severe cost-of-living crisis in a generation.

The stipulation for the surcharge’s activation includes a formal government proclamation and publication in the National Gazette—procedures that will precede actual implementation.