OPS rejects 5% fuel surcharge, TUC threatens strike

OPS rejects 5% fuel surcharge, TUC threatens strike

The Trade Union Congress (TUC) has warned that it may call a nationwide strike within two weeks if the Federal Government proceeds with a proposed five per cent tax on petroleum products. The tax, intended as part of broader fiscal reforms to boost government revenue, has sparked public concern, as fuel price changes in Nigeria often lead to unrest. TUC leaders criticized the proposal as “economic wickedness” that would worsen the struggles of ordinary Nigerians, and they have begun mobilizing affiliates, civil society groups, student unions, and faith-based organizations for potential nationwide resistance. The proposed levy would target petrol and diesel but exclude cleaner alternatives such as cooking gas, compressed natural gas, kerosene, and other renewable energies.

The tax is not entirely new; it was introduced under the Federal Roads Maintenance Agency (FERMA) Act of 2002 and amended in 2007 to provide a funding mechanism for federal and state road maintenance through a five per cent charge on petrol and diesel sales.

Meanwhile, the Organised Private Sector (OPS) has also opposed the tax, warning that it would aggravate inflation and negatively impact Nigerians’ cost of living. The Lagos Chamber of Commerce and Industry highlighted that the surcharge would likely increase fuel prices at the pump, reduce consumption, and put further strain on public transportation. The government, however, has clarified that no official start date for the tax has been set, and only the Finance Minister has the authority to implement it.