TUC Slams Planned 5% Tax on Petroleum Products, Threatens Nationwide Strike

By Joseph Iyaji | Akahi News

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The Trade Union Congress of Nigeria (TUC) has issued a strong warning to the Federal Government, demanding the immediate cancellation of the planned five per cent tax on petroleum products. The Labour Centre described the proposed levy as “economic wickedness” against Nigerians already reeling under severe economic hardship.

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The Federal Government had introduced the tax through 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 law mandates a five per cent surcharge on the supply and sale of all refined fossil fuel products in Nigeria, with effect from January 1, 2026, whether locally produced or imported.

Labour Union Condemns Government’s Policy

In a joint statement issued in Lagos by TUC President Festus Osifo and Secretary General Nuhu Toro, the union rejected the tax, warning that it would push the nation’s workers and citizens “deeper into untold suffering and poverty”.

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“Let it be clear: workers and citizens are still reeling from the pains of subsidy removal, skyrocketing fuel prices, food inflation, and a collapsing naira,” the statement read. “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 stressed that the government’s insistence on introducing the surcharge shows a lack of empathy for the plight of ordinary Nigerians already battling with high transport costs, food inflation, and the declining value of the naira.

Stakeholders Warn of Economic Consequences

Akahi News learnt that several stakeholders have condemned the planned tax, warning of its potential to drive pump prices beyond reach.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) cautioned that the law could force many of its members out of business. “If enforced, the surcharge will only worsen the already dire situation in the energy sector,” a PETROAN official stated.

Extractive industry analysts, including Extractive360, argued that the tax would cause fuel prices to spiral further, given that the average pump price of petrol currently stands at N950 per litre, representing a staggering 382 per cent increase from N197 per litre when President Tinubu assumed office on May 29, 2023.

Labour Threatens Mass Resistance

Warning of possible mass action, the TUC directed its state councils, affiliates, and structures nationwide to remain vigilant for further instructions that may lead to a total nationwide strike if the government fails to heed its demands.

“We hereby urge the Federal Government to immediately stop this anti-people plan in its entirety. Failure to do so will leave us with no option but to mobilise Nigerian workers and the masses for a total nationwide resistance,” the TUC declared.

The union also called on civil society organisations, professional bodies, student unions, market associations, faith leaders, and all patriotic Nigerians to stand in solidarity and reject policies that “seek to mortgage the nation’s future.”

Mounting Criticism of Tinubu’s Economic Policies

Since removing fuel subsidies in 2023, the Tinubu administration has faced mounting criticism over rising energy prices, food inflation, and currency instability. Many Nigerians accuse the government of pursuing anti-poor policies under the guise of economic reforms, while failing to provide adequate relief measures.

Economic analysts argue that while tax reforms may boost government revenue, such measures must be balanced against their social and economic impact, especially at a time when citizens are grappling with record inflation and job losses.

What Next for the Federal Government?

As tension grows, all eyes are now on the Federal Ministry of Finance and the Presidency to see whether the administration will backtrack on the proposed tax or risk a showdown with organised labour and civil society.

For now, the TUC insists: “Enough is enough. Nigerians deserve economic justice, not endless punishment.”