Trade Union Congress Warns Against Proposed Petrol Import Duty
The President of the Trade Union Congress (TUC), Festus Osifo, has raised concerns over the Federal Government’s proposed 15 per cent import duty on Premium Motor Spirit (PMS), warning that it could worsen the living conditions of Nigerians amid rising fuel prices and inflation. The move comes as the country continues to grapple with economic challenges, including high inflation and limited domestic refining capacity.
During an interview on Channels Television’s ‘TUC Half Hour,’ Osifo emphasized that the union is currently analyzing the policy and engaging with stakeholders to fully understand its implications. He expressed skepticism about the government’s rationale for the tax, particularly given the existing issues with Nigeria’s refining sector.
“The first impression was a no, no, no. Why are we imposing tax when our refineries are not producing?” Osifo questioned. “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.”
Potential Impact on Consumers
Osifo highlighted that the immediate effect of the proposed duty could be a sharp increase in pump prices, especially since Nigeria still imports a significant volume of its PMS. He called for clarity from the government regarding the scope of the tax, questioning whether it would apply solely to foreign importers or also to those operating within Nigeria’s free trade zones.
Without clear guidelines, the policy could create confusion and ultimately burden ordinary Nigerians at the pump. The TUC president stressed the importance of consulting labor and industry stakeholders before implementing such a decision.
He noted 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 Osifo, the union’s priority remains safeguarding workers and citizens from further economic hardship.
Government Perspective and Industry Concerns
According to reports, the President of Nigeria, Bola Tinubu, approved the new tariff in a letter dated October 21, 2025, directed to the Federal Inland Revenue Service and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, instructing immediate enforcement.
Government sources claim that the 15 per cent import duty 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.
Official projections suggest that the new 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.
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.
Calls for Transparency and Consultation
Osifo reiterated that the TUC is committed to ensuring that any policy affecting the economy is thoroughly reviewed and understood. He emphasized the need for transparency and consultation, stating that the union will provide a detailed response once it has fully analyzed the policy.
The proposed import duty has sparked debate among various stakeholders, with some supporting the move as a step toward reducing reliance on imported fuel, while others fear it could exacerbate economic pressures on the average citizen.
As the situation unfolds, the focus will remain on how the policy is implemented and whether it aligns with the broader goal of improving Nigeria’s energy security and economic stability.