The Trade Union Congress of Nigeria ,TUC, on Monday calls on the Federal Government to cancel the planned five per cent tax on petroleum products, warning that the policy will worsen the country’s economic crisis and push millions deeper into poverty.
In a press statement issued in Lagos, the labour centre outrightly rejects the Federal Government’s proposal, describing it as “an act of economic wickedness” against already overburdened Nigerians.
The Federal Government introduces a five per cent surcharge on petrol and diesel sales under the newly signed Nigeria Tax Administration Act, one of four tax reform bills signed into law by President Bola Tinubu on June 26, 2025.
The regulation mandates that the surcharge apply to every supply or sale of refined fossil fuel products in Nigeria, whether locally produced or imported, with the money collected at the point of sale. Cleaner fuels such as renewables, household kerosene, cooking gas and compressed natural gas remain exempt.
Industry players have already voiced strong opposition. The Petroleum Products Retail Outlets Owners Association of Nigeria warns that the law, if enforced, could force its members to shut down operations.
Stakeholders in the extractive sector, including Extractive360, argue that imposing a 5% tax on petroleum products from January 1, 2026, will further increase petrol pump prices.
They note that with the average national pump price of petrol already at N950 per litre — up about 382 per cent from N197 per litre when President Tinubu assumed office on May 29, 2023 — Nigerians risk further impoverishment.
TUC’s national president, Festus Osifo, and its secretary general, Nuhu Toro, state that Nigerian workers currently suffering from the removal of fuel subsidy must not be subjected to additional hardship.
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“Workers and citizens are still reeling from the pains of subsidy removal, skyrocketing fuel prices, food inflation, and a collapsing naira,” the statement reads. “To now introduce another levy on petroleum products is to deliberately compound suffering, cripple businesses, and push millions of citizens deeper into poverty.”
The TUC accuses the government of treating Nigerians as “sacrificial lambs for its economic experiments” and failing to provide relief, jobs, and solutions. “Instead of offering relief, it has chosen to further squeeze citizens dry. This is unacceptable!” it declares.
The union demands the Federal Government “immediately stop this anti-people’s plan in its entirety,” warning that failure to act will leave it with no option but to mobilise Nigerian workers and the masses for a total nationwide resistance.
“Strike action is firmly on the table if the government dares to ignore this warning and go ahead to implement this policy,” the statement warns.
Accordingly, the TUC directs all its state councils, affiliates, and structures nationwide to remain vigilant and await further instructions that could lead to decisive action. It also calls on civil society organisations, professional bodies, student unions, market associations, faith leaders, and all patriotic Nigerians to stand in solidarity.
“Together, we must resist policies that seek to further impoverish citizens and mortgage our future,” the statement concludes. “Enough is enough. Nigerians deserve economic justice, not endless punishment.”
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