OPS rejects 5% fuel levy as TUC threatens nationwide strike

The Trade Union Congress (TUC) has issued a two-week ultimatum to the Federal Government to withdraw its proposed five per cent surcharge on petroleum products or face a nationwide strike.

The Organised Private Sector (OPS) has also criticised the plan, warning that the tax would further fuel inflation and worsen the economic hardship already faced by Nigerians.

Speculation about the implementation date of the levy, rumoured to begin in January 2026, has triggered public anxiety in a country where fuel price adjustments often lead to social unrest. However, the Presidential Tax Reform Committee has dismissed the claims, stating that no start date has been set and only the Minister of Finance can decide when or if the measure will take effect.

The surcharge, which would apply to petrol and diesel but exempt cooking gas, compressed natural gas (CNG), kerosene, and renewables, is part of the government’s revenue-boosting reforms. But critics argue the timing is wrong for an economy struggling under the weight of fuel subsidy removal, spiralling inflation, and a weakened currency.

TUC vows total resistance

Describing the proposal as “economic wickedness,” TUC President-General Festus Osifo and Secretary-General N.A. Toro said the levy would “compound the struggles of ordinary Nigerians.”

“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 leaders said in a statement.

The TUC announced that it has begun mobilising its affiliates, state councils, civil society organisations, professional bodies, student unions, market associations, and faith-based groups for a “total nationwide resistance” should the policy proceed.

“Enough is enough,” the union declared, warning that strike action was firmly on the table if the government fails to back down. “Nigerians deserve economic justice, not endless punishment.”

Although the proposed levy has stirred controversy, it is not new. It was first introduced under the Federal Roads Maintenance Agency (FERMA) Act of 2002 and later amended in 2007 to allow for a five per cent user charge on petrol and diesel sales. Under the law, 40 per cent of the revenue is allocated to FERMA and 60 per cent to State Road Maintenance Agencies.

Private sector kicks against levy

The OPS has also rejected the plan, stressing that any additional tax, no matter how small, will raise costs and push inflation higher.

President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, warned that the five per cent charge, collected at the point of sale, will ultimately fall on consumers and further strain the transportation sector.

“If the tax is added to the pump price, it means the cost is already passed to the consumer,” Idahosa said. “What it also means is that the current reduction in consumption of petrol and diesel will worsen, because many people already minimise car use. This will put additional pressure on the public transportation system.”