Abuja, Nigeria — The Nigeria Labour Congress, the country’s largest umbrella organisation representing trade unions, has called on the federal government of Nigeria to urgently introduce tax relief and special allowances for workers following a sharp rise in petrol prices linked to escalating tensions in the Middle East.
In a statement issued on Sunday, March 15, 2026, the President of the Nigeria Labour Congress, Joe Ajaero, warned that the sudden increase in fuel prices is worsening the economic hardship facing workers across Africa’s most populous nation.
Petrol prices in Nigeria are currently selling between ₦1,170 and ₦1,300 per litre (about $0.73 to $0.81), a development the labour union says is placing severe pressure on households already struggling with inflation and rising transportation costs.
The labour body linked the surge in fuel prices to the ongoing military tensions involving the United States, Israel, and Iran, which have sent shockwaves through global energy markets. According to the union, Nigeria’s reliance on global oil pricing and its weak domestic refining capacity have left the country exposed to international shocks.
In a statement titled “Save Nigerians From This Shock: An Urgent Relief Has Become Necessary,” Ajaero said the situation is pushing millions of workers toward deeper poverty.
“NLC voices the collective anguish of millions of Nigerian workers who are bearing the brutal cost of a global capitalist crisis they did not create. The military escalation involving the United States, Israel, and Iran has sent shockwaves through global oil markets. As a result, petrol prices in Nigeria have skyrocketed to between N1,170 and N1,300 per litre.
“This is a direct assault on the Nigerian people. While imperialist rivalries play out abroad with bombs and military escalation, Nigeria’s working class is being bombarded with poverty and hunger because we have failed to ensure that our public refineries are operational.
“This crisis has brutally exposed the fragility of Nigeria’s downstream petroleum sector. It has stripped away the illusion that local refining alone would shield the country from global shocks. The Dangote Refinery has adjusted its prices in line with global volatility, passing the burden directly to the masses. This undermines the narrative that domestic production alone guarantees price stability.
“As long as Nigeria remains dependent on a market-driven pricing structure tied to global fluctuations, and refuses to revive its public refining capacity, the country will remain hostage to international conflicts and market speculation.”
The Nigeria Labour Congress said the situation demonstrates long-standing concerns about the decline of Nigeria’s state-owned refining infrastructure. The organisation has repeatedly warned that neglecting public refineries could eventually lead to excessive private sector dominance in the downstream petroleum sector.
“The NLC had earlier warned about the danger of sabotaging public refineries in ways that could create monopolistic control in the downstream sector. This moment must serve as a wake-up call to the managers of Nigeria’s economy.
“No nation achieves economic independence by exporting jobs and importing prices. The government must immediately halt the decay of the public sector and ensure the full rehabilitation and operation of the Port Harcourt, Warri, and Kaduna refineries. This is not a favour but the right of the Nigerian people, enabling the country to cushion itself against an increasingly hostile global economic environment.”
The labour union stressed that the rising cost of fuel is directly affecting daily life in Nigeria, particularly transportation and food prices.
“The soaring cost of petrol, PMS, and diesel (AGO) has made transportation a heavy burden on workers. Food inflation continues to rise, while meagre wages are being swallowed by the rising cost of living. When workers cannot afford transportation to their workplaces, the economy stalls. When families cannot afford three meals a day, society sits on a keg of gunpowder.
“The government cannot foreclose any action that would offer relief to the people. It is the duty of the state to act decisively to prevent the suffering of its citizens, rather than helplessly attributing the crisis solely to the Middle East conflict.”
The union also cited projections by the Nigeria Economic Summit Group, a policy think tank that brings together government and private sector leaders, which estimate that Nigeria could earn an additional ₦30 trillion (about $18.8 billion) in oil revenue due to rising global crude prices linked to the crisis.
“Recent projections by the Nigeria Economic Summit Group (NESG) indicate that Nigeria may gain an estimated N30 trillion oil windfall from the ongoing Middle East crisis.
“The Nigeria Labour Congress therefore demands the following urgent actions: immediate wage award and cost-of-living allowance (COLA) for all workers to cushion the rising cost of living; expansion and overhaul of the Cash Transfer programme to ensure transparency and guarantee that assistance reaches the most vulnerable citizens, with transfers adjusted to reflect inflation; immediate tax relief for workers, including suspending regressive taxes on low-income earners and taxing the informal sector. Taxing minimum-wage earners amounts to extortion. The NLC also demands a clear timeline for the full operationalization of all public refineries. The Nigerian state must be held accountable for the billions of naira spent on turnaround maintenance.
“Nigerian workers are being pauperized and subjected to immense suffering. Workers are not statistics—they are the engine of the nation. When the engine overheats, the entire vehicle crashes.
“The estimated N30 trillion oil windfall expected from the Middle East crisis must not disappear like previous windfalls. These resources must be invested in the Nigerian people and used to cushion the economic hardship caused by the current crisis.
“The government must engage in sincere social dialogue with Nigerian workers and the broader citizenry. Using the Middle East crisis as a justification for policies that deepen poverty is unacceptable. The primary duty of the government is to ensure the welfare and security of its citizens. We demand action. We demand justice. We demand survival.”
Okay News reports that the Middle East conflict is producing mixed economic effects for Nigeria. Higher global crude oil prices may boost export earnings for the country, which is one of Africa’s major oil producers.
However, the benefits are being offset domestically by higher fuel prices, rising inflation, and increased transportation costs, all of which are putting pressure on Nigerian households.
The crisis has also renewed concerns about Nigeria’s dependence on imported refined petroleum products despite being a major crude oil producer. Economists say the situation highlights the importance of strengthening domestic refining capacity and diversifying the country’s economy to reduce vulnerability to global oil market shocks.
