Okay News reports that the Trade Union Congress of Nigeria (TUC) has raised strong concerns over the Federal Government’s proposal to introduce a 15 per cent import duty on Premium Motor Spirit (PMS), popularly known as petrol, warning that the policy could worsen the already harsh economic conditions faced by citizens.
The President of the TUC, Festus Osifo, speaking during an interview on Channels Television’s TUC Half Hour on Wednesday, said the union was still reviewing the new fiscal measure and consulting with key industry stakeholders to understand its full implications.
According to Osifo, while the government claims that the policy aims to boost local refining capacity, its immediate consequence would likely be a significant increase in petrol pump prices, given that Nigeria still imports about 70 per cent of its PMS consumption.
“The first impression was a no, no, no. Why are we imposing tax when our refineries are not producing?” Osifo asked.
He further explained that the Dangote Refinery, located in Lagos and currently the largest single-train refinery in the world, operates within a free trade zone, which already exempts it from import duties. He warned that if the 15 per cent import tax applies to other fuel importers, the additional cost will inevitably be passed on to consumers at the pump.
“If this 15 per cent duty applies to importers, they will simply transfer the cost to consumers, that’s the reality,” Osifo stated.
The labour leader called for urgent clarity from the Federal Government regarding the scope of the tax — specifically, whether it will target importers bringing petrol from overseas or also affect operators within Nigeria’s free trade zones. He cautioned that an unclear implementation framework could create confusion and compound the burden on ordinary Nigerians.
Osifo emphasized that before such a major fiscal policy is implemented, there must be adequate consultation with labour unions, oil marketers, and other key stakeholders in the downstream petroleum sector.
“Both the Trade Union Congress and the Petroleum and Natural Gas Senior Staff Association of Nigeria will present a defined and informed position once we have fully assessed the policy’s details,” he said, reiterating that the union’s primary objective is to safeguard workers and citizens from further economic hardship.
Okay News reports that President Bola Ahmed Tinubu’s approval of the new 15 per cent fuel import duty was conveyed in an official letter dated October 21, 2025, addressed to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), directing immediate enforcement.
Government sources said the policy is part of ongoing reforms to encourage local refining by the Dangote Refinery and several modular refineries in Edo, Rivers, and Imo States, reducing Nigeria’s dependency on imported fuel.
According to official projections, the new tariff could increase the landing cost of petrol by approximately ₦99.72 per litre, pushing pump prices in Lagos to around ₦964.72 per litre — a rate still lower than many regional averages across West Africa.
However, industry experts and economists have warned that without corresponding social support measures, such as transport subsidies or tax reliefs, the new fuel duty could further strain households already struggling with high inflation and the effects of the subsidy removal implemented in 2023.
“The government must be careful not to deepen poverty in the process of promoting local production,” an oil sector analyst cautioned.
Labour unions have since urged the Federal Government to suspend the proposed policy until comprehensive consultations are concluded and the country’s refineries begin producing at full capacity.
