The Trade Union Congress of Nigeria (TUC) has issued a strong warning to the Federal Government to withdraw its planned five per cent tax on petroleum products or face industrial action.
In a statement on Monday, the labour group described the proposal as an act of economic wickedness against impoverished Nigerians, stressing that administration of the tax law will represent a sharp increase of over 380 per cent from the N197 per litre price when President Bola Tinubu removed fuel subsidy on May 29, 2023.
The TUC President, Festus Osifo, and Secretary General, Nuhu Toro, in a joint statement maintained that workers were already suffering from the removal of fuel subsidy and cannot bear more burden from additional taxes.
Noting that workers and citizens are still reeling from fuel price hikes, food inflation, and a collapsing naira, the labour union accused the government of deliberately compounding suffering and pushing millions into deeper poverty.
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Osifo said: “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.”
He warned that unless the Federal Government withdraws the new tax within 14 days, the union would have no option but to mobilise workers and the masses for nationwide resistance, adding that strike action is “firmly on the table” if the authorities ignore the warning and proceed with implementation.
The union has also directed all its state councils, affiliates, and structures across the country to remain on alert for further instructions and urged civil society organisations, professional bodies, student unions, market associations, faith leaders, and other groups to stand in solidarity in rejecting the policy.
As expected, Petroleum marketers under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have also warned that the 5% fuel levy could force many of its members out of business.
It would be recalled that the Federal Government had earlier introduced the surcharge through the newly signed Nigeria Tax Administration Act 2025, which provided that the levy be applied on all sales of petrol and diesel, whether imported or locally refined.
According to the law, the tax will take effect from January 1, 2026, although cleaner fuels such as renewables, kerosene, cooking gas, and compressed natural gas are exempted.
Transporters, commuters and other stakeholders in the oil and gas sector had since the announcement been lamenting over the fiscal policy, which they noted would further accentuate the general price level of the economy.
