Tensions are rising over the Federal Government’s plan to introduce a five per cent surcharge on petroleum products, with the Trade Union Congress (TUC) threatening a nationwide strike and members of the Organised Private Sector (OPS) warning that the levy would further stoke inflation and deepen economic hardship.
The TUC on Monday issued a two-week ultimatum to the government to withdraw the policy or face “total nationwide resistance.” The union’s leaders, Festus Osifo and N.A. Toro, in a statement, described the proposal as “economic wickedness” that would compound the struggles of Nigerians already reeling from subsidy removal, rising inflation and a weakened currency.
“The 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 union declared.
The Congress said it had begun mobilising affiliates, civil society groups, professional associations, student unions, and faith-based organisations for coordinated action, stressing that strike action remained firmly on the table if the government failed to back down.
The levy, first introduced under the Federal Roads Maintenance Agency (FERMA) Act of 2002 and amended in 2007, would impose a five per cent user charge on petrol and diesel, with proceeds earmarked for federal and state road maintenance agencies. It excludes cleaner fuels such as cooking gas, kerosene, and compressed natural gas.
Private Sector Pushback
The OPS has also rejected the plan, warning that it would worsen inflation and cripple already struggling businesses. President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, said the surcharge, if implemented, would be passed directly to consumers, with the transport sector bearing the worst impact.
“Many people already use their cars minimally. This tax will put more pressure on public transportation and lead to higher costs for commuters,” he noted, cautioning that enforcement discrepancies among fuel marketers could distort pricing further.
While predicting the increase may not be dramatic in absolute terms, Idahosa warned transport operators could exploit the policy to raise fares disproportionately, fuelling broader inflation. He urged the government to accelerate investment in alternatives such as compressed natural gas, noting that adoption remains minimal due to inadequate facilities.
Similarly, President of the Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, described the tax as another blow to businesses already overwhelmed by multiple levies. “Poverty is increasing daily. Businesses are shutting down. The government should be providing relief, not squeezing the last kobo from citizens,” he said.
Egbesola acknowledged macroeconomic gains under President Bola Tinubu’s administration but argued that ordinary Nigerians had yet to feel any real benefit. He called for targeted interventions and tax reliefs to cushion households and enterprises.
National Vice President of the National Association of Small-Scale Industrialists, Segun Kuti-George, also condemned the policy, calling it “one tax too many.” He urged the government to explore innovative revenue options beyond taxation, warning that another fuel levy risked igniting fresh inflationary pressures.
Despite mounting opposition, officials maintain that the surcharge forms part of broader fiscal reforms intended to raise dedicated funds for Nigeria’s crumbling road infrastructure. However, critics insist that the timing is wrong, with many Nigerians already pushed deeper into poverty.
