In a press statement issued Monday in Lagos, the Labour Centre rejected the levy outright, insisting that workers and citizens cannot bear additional burdens following the removal of fuel subsidy and the sharp rise in petrol prices.
The new policy is part of the Nigeria Tax Administration Act, signed into law by President Bola Tinubu on June 26, 2025. Under the Act, a five per cent surcharge will be applied to every sale of petrol and diesel, whether locally refined or imported. Proceeds will be collected at the point of sale. However, cleaner fuels such as cooking gas, kerosene, compressed natural gas, and renewables are exempted.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and other stakeholders have also criticised the move, warning it could force many businesses to shut down. Extractive industry monitors, including Extractive360, argued that the surcharge will worsen the plight of citizens, noting that petrol currently sells at an average of N950 per litre—an increase of over 382 per cent from N197 when Tinubu assumed office in May 2023.
TUC President, Festus Osifo, and Secretary General, Nuhu Toro, jointly signed the statement, which cautioned that Nigerian workers would resist any further attempt to deepen poverty through taxation.
“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 deeper into poverty,” the union stated.
The TUC declared that it would not hesitate to mobilise for a nationwide strike if the government proceeds with the tax. The union also directed all its state councils and affiliates to remain on alert.
The Labour Centre further called on civil society organisations, student bodies, market associations, faith leaders, and professional groups to join hands in resisting what it described as an “anti-people policy.”
“Government cannot continue to use Nigerians as sacrificial lambs for its economic experiments. Enough is enough—citizens deserve relief, not endless punishment,” the TUC stressed.
Meanwhile, the Federal Ministry of Labour and Employment has yet to respond to the threats as the policy is scheduled to take effect from January 1, 2026.
