The Trade Union Congress of Nigeria (TUC) has rejected the Federal Government’s planned five per cent tax on petroleum products, describing it as an act of “economic wickedness” against already overburdened Nigerians.
In a statement jointly signed by its President, Festus Osifo, and Secretary-General, Nuhu Toro, the labour centre warned that if the policy is not withdrawn within 14 days, it will mobilise workers and allies nationwide for a decisive resistance, including the option of strike action.
Labour Condemns New Levy
The Federal Government introduced the surcharge under the Nigeria Tax Administration Act, one of four reform bills signed into law by President Bola Tinubu on June 26, 2025. The levy requires a five per cent charge on every supply or sale of petrol and diesel, whether produced locally or imported. However, cleaner fuels such as household kerosene, cooking gas, compressed natural gas (CNG), and other renewables are exempt.
TUC argued that the policy would further worsen the hardships of Nigerians, who are already grappling with the removal of fuel subsidy, spiralling petrol prices, soaring food inflation, and a weakened naira. The labour leaders noted that the average national pump price of petrol currently stands at ₦950 per litre, a 382 per cent increase from ₦197 per litre when President Tinubu assumed office in May 2023.
“To now introduce another levy on petroleum products is to deliberately compound suffering, cripple businesses, and push millions deeper into poverty,” the statement read. “Government cannot continue to use Nigerians as sacrificial lambs for its economic experiments. Instead of offering relief, jobs, and solutions, it has chosen to further squeeze citizens dry. This is unacceptable.”
Stakeholders Express Concern
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that the measure, if enforced, could force many operators out of business. Extractive sector monitors, including Extractive360, also cautioned that the tax, set to take effect from January 1, 2026, would drive fuel prices higher and further impoverish citizens.
TUC has directed all its state councils, affiliates, and allied structures to remain vigilant and await further communication that could trigger nationwide mobilisation. The congress also urged civil society organisations, professional bodies, student unions, market associations, and faith leaders to stand in solidarity with workers in resisting the policy.
“Enough is enough. Nigerians deserve economic justice, not endless punishment,” the union declared.