Connect with us

Business

Myths and facts of the five per cent fuel surcharge

Published

on

By Aderonke Atoyebi 

It’s me again, here to clear the air. I am confident in this government and its vision, so I want to set the record straight. If you have been scrolling through social media or catching the news, you have probably seen people talking about a “five per cent fuel surcharge”. Some say it will hit our pumps in January 2026, while others claim it is a new tax meant to make life harder for Nigerians.

A fuel surcharge is a small extra charge on fuel, meant for a specific purpose. In this case, it is for our roads and transport infrastructure. The goal is to lower the cost of moving goods and people, ease logistics, and ultimately help bring down inflation. The five per cent surcharge has been around since 2007 under the FERMA Act, and its job is to make sure there’s money set aside for fixing and maintaining them. It is not a tax the government can use however it likes, and it is definitely not about immediately taking more from us at petrol stations.

The 2025 Tax Act didn’t create a new surcharge. What it does is modernise it, put it in a clear framework, and make it more transparent. This means the law is easier to understand, and everyone knows exactly how the money will be used.

Here’s the thing: a lot of Nigerians don’t understand: the five per cent fuel surcharge won’t automatically kick in January 2026. Before anything happens, the Minister of Finance has to give the official go-ahead, and it has to be published in the official gazette. This means Nigerians have time to plan, and families using household fuels like kerosene, cooking gas (LPG), CNG, or renewable energy won’t feel any impact.

So, why should we see this as a good step? Over the past two years, this administration has already delivered noticeable improvements on several roads across the country. Highways like the Lagos-Ibadan Expressway, the Abuja-Kaduna Road, and sections of the Enugu-Onitsha route have seen repairs and upgrades, making travel faster and more comfortable. With the five per cent fuel surcharge, the government can continue this progress and expand it to more states.

Some people ask why the government can’t simply use the money saved from fuel subsidies instead. While subsidy savings do help, those funds are already stretched across education, healthcare, security, and other urgent national priorities. Having this surcharge means transport infrastructure all over Nigeria has its own dedicated money, so it doesn’t have to compete with other pressing needs and can be spent consistently where it matters most.

No need for all the back-and-forth. This five per cent fuel surcharge is simply a way to make our roads and transport systems better and safer for everyone.

With this fund, more roads across the country can be fixed and maintained properly, so that drivers, traders, and commuters don’t have to struggle with bad roads. Cars will last longer, goods will move faster, and our daily journeys to work, school, or market will be much easier. It’s a small step today that promises a big difference for Nigerians tomorrow.

Aderonke Atoyebi, the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service, writes via contact@arabinrinaderonke.com

Continue Reading

Business

NEXIM Bank Secures Bbb+ Rating from Agusto & Co., Declares ₦30.47 Billion Operating Profit

Published

on

By Joel Ajayi

The Nigerian Export-Import Bank (NEXIM) has been assigned a Bbb+ rating by leading credit rating agency Agusto & Co. Limited, affirming its satisfactory financial condition and strong capacity to meet obligations relative to other development finance institutions (DFIs) in Nigeria.

For the year ended 2024, NEXIM Bank reported an operating profit of ₦30.47 billion, more than double the ₦13.75 billion recorded in the previous year. This remarkable growth underscores the Bank’s financial resilience and operational efficiency.

Established to promote Nigeria’s non-oil exports and support import-substituting businesses, NEXIM is fully owned by the Federal Government of Nigeria through equal shareholding by the Central Bank of Nigeria (CBN) and the Ministry of Finance Incorporated (MOFI).

The Bank has sustained strong liquidity and capital adequacy ratios, alongside notable growth in its loan book and equity investments. Key sectors supported include manufacturing, agriculture, solid minerals, and services.

According to Managing Director, Mr. Abba Bello, NEXIM has intensified its intervention in the non-oil export sector, disbursing over ₦495 billion and facilitating the creation and sustenance of more than 36,000 direct and indirect jobs.

Among the Bank’s key initiatives are:The Regional Sealink Project: A public-private partnership designed to improve maritime logistics across West and Central Africa. Promotion of Factoring Services: Offering alternative export financing solutions for SMEs. And Joint Project Preparation Fund (JPPF): Implemented in partnership with Afreximbank to enhance the bankability of export projects.

Additionally, NEXIM is developing tailored financing schemes for the mining sector, including Contract Mining, Equipment Leasing, and Buyers’ Credit/ECA Financing, aimed at unlocking export potential and boosting foreign exchange earnings.

With its renewed drive, NEXIM Bank remains committed to building local processing capacity, advancing Nigeria’s competitiveness in global trade, and strengthening non-oil export revenues by moving up the commodity value chain.

Continue Reading

Trending

error

Enjoy this blog? Please spread the word :)