Fuel crisis: TUC demands 50% tax reduction for workers, manufacturing companies

THE Trade Union Congress of Nigeria, TUC, has demanded a 50 per cent tax reduction for Nigerian workers and manufacturing companies to cushion the harsh effects of fuel crisis occasioned by the United States/Israel-Iran conflict.

The TUC contended that workers were suffering the effects of the global fuel crisis and renewed its demand for the federal government to provide palliatives to workers and called on the government to treat the situation as both a foreign policy and domestic economic emergency.

These and other issues were contained in a communiqué issued at the end of the labour movement’s National Executive Council, NEC, meeting in Abuja.

The communiqué, signed by TUC President Comrade Festus Osifo, and Secretary General, Dr. Nuhu Toro, read: “NEC expressed deep concern over the ongoing Iran–US conflict and its far-reaching implications for the global economy, particularly in relation to energy prices, shipping costs, supply chains, inflation, food security, and foreign exchange stability.

“Council noted that despite Nigeria’s status as an oil-producing nation, increases in global oil prices do not translate into relief for Nigerian workers. Rather, such crises often exacerbate hardship through rising fuel prices, increased freight costs, imported inflation, pressure on the naira, and escalating costs of goods and services.

“NEC therefore calls on the Federal Government to treat the situation as both a foreign policy and domestic economic emergency.

“Government must take urgent steps to protect Nigerians in affected regions, curb profiteering, strengthen local refining capacity, build strategic fuel reserves, and ensure that any additional crude oil revenue is transparently deployed to cushion the impact on workers and vulnerable citizens.”

Continuing, the communiqué said: “NEC reviewed the persistent hardship arising from rising fuel prices and reaffirmed that urgent government intervention is required to prevent further increases in the pump price of petroleum products."

“Council noted that the combined effects of global crude oil volatility, exchange rate pressures, and domestic supply constraints continue to drive up the cost of petrol, diesel, and aviation fuel, thereby worsening transportation costs, food prices, production expenses, and overall living conditions.

“NEC therefore calls on the Federal Government to allocate part of excess crude revenue—earned above the budget benchmark—to subsidize crude oil supplied to domestic refineries, including the Dangote Refinery and other local refineries.

“This approach represents a transparent, production-linked intervention that can lower the cost of refined products without reverting to the discredited subsidy regime.

“NEC also demands a 50% reduction in taxes on manufacturing companies and workers during this period to ease economic pressure and support productivity.”

On workers’ welfare and the housing loan scheme, it said: “NEC received, with cautious optimism, the approval of welfare measures for federal civil servants, including the ¦ 10 billion housing loan scheme aimed at improving access to home ownership.

“While welcoming this initiative, NEC emphasized that policy announcements must translate into tangible benefits. The scheme must be accessible, affordable, transparent, and free from bureaucratic bottlenecks.

“TUC calls on the Federal Government to ensure that the scheme is not hijacked by privileged interests. State governments are equally urged to replicate similar interventions and extend such benefits to local government workers, private sector employees, and retirees who continue to face severe economic hardship.”

The labour movement frowned at the epileptic power supply despite the huge tariffs Nigerians are subjected to without commensurate service delivery.

“NEC strongly condemned the continuous increase in electricity tariffs without corresponding improvements in service delivery.

“Council observed that Nigerians are being compelled to pay more for unreliable power supply, estimated billing, and poor customer service. The tariff band system has further worsened the situation, with many consumers charged premium rates without receiving commensurate electricity supply.

“NEC insists that Nigerians must not be forced to pay for inefficiency. Any tariff regime must be fair, transparent, service-based, and accountable.

“TUC calls on the Federal Government, NERC, and distribution companies to ensure universal metering, eliminate estimated billing, improve supply, and engage Organized Labour before implementing policies that impose additional burdens on citizens.”

The TUC observed with grave concern the casualization of workers, especially in the private sector, and called on the government—particularly the Ministry of Labour—to rise to the occasion and protect vulnerable Nigerian workers.

The TUC further condemned the alleged unfair labour practices in the food and beverages sector, particularly the impasse between NAFDAC and distilling companies. “We implore the Minister of Health to intervene by bringing parties to the negotiating table,” it said.

NEC called on governments at all levels to prioritize the welfare, dignity, and security of Nigerian workers in all policy decisions.

“The Trade Union Congress of Nigeria remains committed to constructive engagement, social dialogue, and national development.

“However, Congress will not hesitate to mobilize workers where policies continue to deepen hardship or undermine the rights and welfare of the working people. A stitch in time saves nine,” it concluded.

Culled from Vanguard