November 4, 2025
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The Trade Union Congress (TUC) of Nigeria has issued a stern warning to the Federal Government over its plan to introduce a five per cent tax on petroleum products, threatening a nationwide strike if the proposal is not scrapped.

The union described the tax as an economic assault on already burdened Nigerians and called for its immediate cancellation.

In a press statement released in Lagos on Monday, the TUC strongly rejected the planned levy, emphasizing that the timing and nature of the tax would exacerbate the difficulties faced by millions of Nigerians coping with high living costs.

The union characterized the tax as an act of economic wickedness that would further impoverish the population.

This new tax is part of the Nigeria Tax Administration Act, signed into law by President Bola Tinubu on June 26, 2025.

The act includes a five per cent surcharge on all sales or supplies of refined fossil fuel products, both locally produced and imported.

The tax is to be collected at the point of sale and specifically exempts cleaner fuels like renewables, household kerosene, cooking gas, and compressed natural gas.

Concerns have also been raised by the Petroleum Products Retail Outlets Owners Association of Nigeria, which warned that the enforcement of this tax could force many fuel retailers out of business.

Industry observers such as Extractive360 have criticized the move, projecting that the new tax will significantly increase petrol prices nationwide, directly impacting Nigerians who rely heavily on fuel for transportation and energy needs.

Currently, the average national pump price of petrol stands at N950 per litre, a sharp rise of 382 per cent from N197 per litre when President Tinubu assumed office in May 2023.

With the introduction of this tax, prices are expected to climb even higher, placing additional strain on Nigerians.

TUC’s national president, Festus Osifo, along with Secretary General Nuhu Toro, highlighted the ongoing hardships faced by Nigerian workers due to subsidy removal, fuel price hikes, food inflation, and a weakening naira.

They warned that imposing a new tax on petroleum products would only deepen these struggles, cripple businesses, and push more citizens into poverty.

The union made it clear that the government must stop using Nigerians as “sacrificial lambs” for economic experiments that do not offer relief or solutions. They cautioned that unless the tax plan is withdrawn, the TUC will mobilize workers and the masses for total nationwide resistance, including the possibility of a strike.

TUC has directed all its state councils and affiliates to remain vigilant and ready for further communication that could trigger decisive action. The union also called on civil society organizations, professional groups, student unions, market associations, faith leaders, and all patriotic Nigerians to join in solidarity against the policy.

“Together, we must resist policies that seek to further impoverish citizens and mortgage our future,” the union declared. “Enough is enough. Nigerians deserve economic justice, not endless punishment.”

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