The Trade Union Congress of Nigeria (TUC) has rejected the Federal Government’s proposed 15% fuel import duty, warning that the policy could further compound the economic hardship already faced by citizens amid soaring fuel prices and record inflation.
TUC President, Festus Osifo, made the union’s position known during an interview on Channels Television’s “TUC Half Hour”, where he explained that the proposal, though aimed at supporting local refining capacity, might instead translate to an immediate hike in petrol pump prices.
Osifo disclosed that the TUC was currently studying the policy in detail while consulting relevant stakeholders to fully understand its implications for both consumers and the downstream oil sector.
TUC Questions Rationale Behind 15% Fuel Import Duty
Speaking on the policy, Osifo faulted the timing and purpose of the 15% fuel import duty, describing it as “ill-advised” given that Nigeria’s refineries remain largely non-functional.
He argued that such a tariff would unfairly penalize Nigerians who are already paying more for petrol following subsidy removal.
“The first impression was a no, no, no. Why are we imposing a tax when our refineries are not producing?” Osifo asked.
He pointed out that the Dangote Refinery, which operates within a free trade zone, already enjoys import duty waivers.
As such, the proposed 15% charge would only affect other fuel importers who would likely transfer the additional cost directly to consumers, leading to another round of price hikes.
According to the labour leader, “If this policy is implemented, the burden will end up on ordinary Nigerians because fuel marketers will pass on the cost.
The government must be careful not to worsen the inflationary pressure that is already eroding household incomes.”
Policy Raises Concerns Over Pump Price Increases
Economic projections suggest that implementing the 15% fuel import duty could raise the landing cost of Premium Motor Spirit (PMS) by about ₦99.72 per litre.
This would potentially push pump prices in Lagos to approximately ₦964.72 per litre, a development that could further strain both individuals and small businesses.
Government officials have defended the proposal, saying it is intended to encourage local refineries—including Dangote, as well as modular refineries in Edo, Rivers, and Imo States—to increase production and reduce Nigeria’s dependence on imported petroleum products, which currently account for nearly 67% of national demand.
However, industry experts warn that while the government’s goal of stimulating local refining is commendable, imposing a 15% import duty on petrol without corresponding relief measures could have unintended economic consequences.
Many argue that the policy should be deferred until local refineries are fully operational and able to meet national consumption levels.
Labour Demands Stakeholder Consultation Before Implementation
Osifo emphasized that the government must provide clarity on whether the 15% fuel import duty will apply exclusively to importers bringing in petrol from foreign sources or whether it would also affect operators within Nigeria’s free trade zones.
He stressed that a lack of clear policy direction could create confusion and open the door for arbitrary enforcement by regulatory agencies.
“The boundaries and scope of this duty must be defined,” he said.
“Both the TUC and PENGASSAN will release an informed position once we review the details comprehensively.
The focus remains on protecting Nigerian workers and citizens from policies that may worsen their hardship.”
He further urged the Federal Government to prioritise dialogue with organised labour and key players in the oil and gas sector before implementing any new fiscal measures that could affect the cost of energy.
Economic Experts Urge Policy Review
Several analysts have echoed the TUC’s position, describing the 15% fuel import duty as counterproductive at a time when Nigeria is still grappling with the ripple effects of fuel subsidy removal.
They warn that the policy could trigger a new wave of inflation, especially in transportation, logistics, and manufacturing.
Energy economist Dr. Ifeoma Nwosu noted that while the government’s plan may generate additional revenue and support local refining, it risks undermining economic recovery efforts.
“The truth is that Nigeria still imports most of its petrol. Any increase in import costs will directly affect pump prices.
Until domestic refining becomes self-sufficient, this tariff will do more harm than good,” Nwosu stated.
She advised the government to instead focus on improving refinery efficiency, strengthening energy infrastructure, and providing fiscal incentives to encourage private investment in local refining.
Background to the Tariff Approval
According to reports, President Bola Tinubu’s approval of the new 15% fuel import duty was communicated in a letter dated October 21, 2025, to the Federal Inland Revenue Service (FIRS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), directing immediate enforcement.
The move is part of the administration’s broader plan to boost non-oil revenue and promote self-sufficiency in fuel production.
But as public concern mounts, observers say the government must balance revenue ambitions with the urgent need to cushion citizens from economic shocks.
As the debate over the 15% fuel import duty intensifies, the TUC has reiterated its readiness to engage the Federal Government constructively but warned that it will not hesitate to resist any policy that deepens economic hardship.
For millions of Nigerians already burdened by rising living costs, the outcome of this policy review could determine whether relief or more strain awaits at the petrol pump in the months ahead.
