TUC Rejects 15% Fuel Import Duty

The President of the Trade Union Congress (TUC)Festus Osifo, has warned that the Federal Government’s proposed 15 per cent import duty on Premium Motor Spirit, otherwise known as petrol, could further worsen the living conditions of Nigerians amid rising fuel prices and inflation.

Speaking on Channels Television’s ‘TUC Half Hour’ monitored by our correspondent, Osifo disclosed that the union is currently studying the policy and consulting with stakeholders to understand its full implications.

The union leader raised concerns that while the government argues that the duty would protect local refining capacity, its immediate impact could be a sharp increase in pump prices since Nigeria still imports a large volume of its PMS.

“The first impression was a no, no, no. Why are we imposing tax when our refineries are not producing?” he asked. “The Dangote Refinery operates within a free trade zone, which means it already enjoys import duty waivers. So, if this 15 per cent duty applies to importers, they will simply transfer the cost to consumers; that’s the reality.”

The TUC boss called for clarity from the government on the scope and boundaries of the tax, questioning whether it would apply solely to importers of petrol from abroad or also to those operating within Nigeria’s free trade zones.

He argued that without clear guidelines, the policy could create confusion and ultimately burden ordinary Nigerians at the pump. The TUC president also stressed that labour and industry stakeholders must be properly consulted before such a decision takes effect.

He maintained that both the Trade Union Congress of Nigeria and the Petroleum and Natural Gas Senior Staff Association of Nigeria would issue a “defined and informed” position after assessing the policy’s details. According to him, the union’s priority remains safeguarding workers and citizens from further economic hardship.

Economic Confidential reported that Tinubu’s approval of the new tariff was conveyed in an October 21, 2025, letter to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, directing immediate enforcement.

According to official projections, the 15 per cent import duty could increase the landing cost of petrol by about N99.72 per litre — nudging pump prices in Lagos to around ₦964.72 per litre, though still below regional averages.

The policy, government sources say, is part of efforts to encourage the Dangote Refinery and modular plants in Edo, Rivers and Imo states to scale up production and reduce Nigeria’s dependence on fuel imports, which still account for roughly 67 per cent of national demand.

However, industry experts warn that without corresponding relief measures, the new duty could further squeeze households already battling the effects of fuel subsidy removal and inflation.