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5% Tax on Petroleum Products Sparks TUC Strike Warning

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The Trade Union Congress of Nigeria (TUC) has called on the Federal Government to rescind its plan to impose a 5% tax on petroleum products.

In a press release issued from Lagos on Monday, the TUC described the proposal as an act of “economic wickedness” against Nigerians who are already struggling.

Persecondnews recalls that the new Nigeria Tax Administration Act, one of four tax reform bills signed into law by President Bola Tinubu on June 26, 2025, introduces a 5% surcharge on petrol and diesel sales.

The regulation requires that the surcharge be collected at the point of sale for all refined fossil fuels sold or supplied in Nigeria, whether they are produced locally or imported.

Cleaner fuels, such as renewables, cooking gas, and compressed natural gas, are exempt.

The Petroleum Products Retail Outlets Owners Association of Nigeria stated that if the law is enforced, it could force its members to close their businesses.

Stakeholders in the extractive sector, including Extractive360, also oppose the plan, warning that the tax, which is set to begin on January 1, 2026, will further increase the price of petrol.

With the average national pump price already at N950 per liter—a 382% increase from the N197 per liter price when President Tinubu took office on May 29, 2023—this new tax will further impoverish Nigerians.

TUC’s national president, Festus Osifo, and Secretary General, Nuhu Toro, noted that Nigerian workers, who are currently enduring hardship from the removal of the fuel subsidy, will not tolerate the additional “pains” the new tax will inflict.

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He said: “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.

“To now introduce another levy on petroleum products is to deliberately compound suffering, cripple businesses, and push millions of citizens deeper into poverty.

“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!

“The TUC hereby urge the Federal Government to immediately stop this anti-people’s 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. Strike action is firmly on the table if the government dares to ignore this warning and go ahead to implement this policy.

“Accordingly, the TUC directs all its state councils, affiliates, and structures nationwide to remain vigilant, watchful and wait for further communication that may culminate in a decisive action should government dare to further ignore the collective will of the people.

“We also call on our allies, civil society organisations, professional bodies, student unions, market associations, faith leaders, and all patriotic Nigerians to stand in solidarity with us in this struggle.

“Together, we must resist policies that seek to further impoverish citizens and mortgage our future.

“Enough is enough. Nigerians deserve economic justice, not endless punishment.”

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