Nigeria Postpones New Tax Law to 2026 as Tinubu’s Economic Policies Deepen Hardship
story, written by Okafor joseph September 10,2025
Nigeria’s federal government has delayed the implementation of its new tax law, which includes a controversial 5% fuel levy, until January 2026, citing fears that immediate enforcement could worsen the already dire cost-of-living crisis under President Bola Tinubu’s administration.
Finance Minister Wale Edun announced the decision in Abuja, noting that the fuel surcharge on petrol, diesel, and other fossil fuels will only be activated once a formal proclamation is issued and published in the official gazette. “Government is mindful of the difficult economic realities and will not rush into measures that further burden Nigerians,” Edun said.
Since Tinubu took office in 2023, his administration has scrapped fuel and electricity subsidies, devalued the naira twice, and rolled out a wave of tax measures that have pushed households and businesses to the brink. Telecommunication users now pay higher levies on calls and data, banks impose new transaction charges, and multiple indirect taxes have eroded disposable income.
Despite the squeeze on citizens, government borrowing has accelerated alongside what critics describe as reckless spending on political offices and non-productive ventures. This has raised questions about the sincerity of the administration’s fiscal discipline while millions of Nigerians face record food inflation and collapsing purchasing power.
The new Nigeria Tax Act, signed into law in June 2025, was intended to streamline revenue collection and plug fiscal gaps, but stakeholders warn that rolling out new surcharges amid historic hardship could destabilize the economy further.
Economists note that while the government insists the fuel levy is not a new tax—its roots trace back to a 2007 law—the timing of its enforcement is critical. With unemployment rising, inflation stubbornly high, and essential services unaffordable for many, the fear is that fresh levies could trigger public unrest and further slow economic recovery.
