By Atoyebi Nike
The President of the Trade Union Congress, Festus Osifo, has cautioned that the Federal Government’s planned 15 percent import duty on petrol could worsen the economic strain on Nigerians. He said the union is reviewing the proposal and consulting widely to understand its full impact.
Osifo warned that the duty could quickly translate into higher pump prices since Nigeria still sources most of its petrol from abroad. He questioned the rationale behind imposing new taxes when the nation’s refineries remain idle.
Osifo noted that the Dangote Refinery already enjoys duty waivers because it operates in a free trade zone. For him, applying the 15 percent duty to importers would simply push additional costs to consumers.
He asked the government to clearly define who the duty affects, stressing that vague guidelines could create confusion and leave ordinary Nigerians paying more. He added that labour bodies, including TUC and PENGASSAN, will issue an official position after completing their review.
The union leader insisted that labour’s priority is to shield citizens from deeper economic hardship.
President Tinubu’s approval of the new tariff was communicated to the FIRS and the petroleum regulatory authority on October 21, 2025, with instructions for immediate implementation. Estimates suggest the duty could raise petrol landing cost by nearly ₦100 per litre, pushing prices in Lagos to about ₦964 per litre.
Government officials argue the measure aims to boost local refining by supporting the Dangote Refinery and modular plants in Edo, Rivers and Imo states, which are expected to reduce reliance on imports. But analysts warn that, without relief measures, the policy could squeeze households already struggling with inflation and the effects of subsidy removal.
