TUC rejects 5% fuel surcharge, threatens strike action

The Trade Union Congress (TUC) has rejected the Federal Government’s planned 5% tax on petroleum products.

It described the proposal as a “reckless act of economic wickedness.”

The union asked the government to withdraw the proposal within 14 days, vowing to shut down critical sectors in the country if it fails to do so.

Daily Times reported that Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made a clarification in a statement posted on his official X page on Saturday.

According to earlier reports, Nigerians might have to pay an additional 5% tax on every litre of fuel from January 2026, as stipulated under the new tax law signed by President Bola Tinubu.

Oyedele dismissed the reports, insisting that the surcharge will not commence at that date.

“It will only commence when the Minister of Finance issues an order published in the Official Gazette as stated under Chapter 7 of the Nigeria Tax Act, 2025,” he explained.

However, Festus Osifo and Nuhu Toro, President and General Secretary of TUC respectively, in a statement they jointly signed, explained that Nigerians were already overburdened with different taxes.

The labour leaders, who described the new tax as unacceptable, argued that Nigerians cannot be used as sacrificial lambs again, declaring that all the affiliates of the Congress had been placed on standby.

They said, “This reckless proposal is nothing but an act of economic wickedness against already overburdened Nigerians.

“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 urged the Federal Government to scrap the proposed tax, warning that failure to do so would force the union to mobilise workers and citizens for a nationwide protest.

It stressed that strike action remains a clear option if the government proceeds with the policy despite public opposition.

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

“We also call on our allies, civil society organizations, 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,” TUC noted.