By Austine Agbo Emmanuel
The Trade Union Congress (TUC) has declared a “domestic economic emergency,” calling on the Federal Government to slash taxes by 50% for workers and manufacturers while utilizing excess crude oil revenue to subsidize feedstock for the Dangote Refinery and other local plants.
Following its National Executive Council (NEC) meeting in Abuja on April 27, 2026, TUC President Festus Osifo warned that the escalating US-Iran conflict is triggering a global surge in energy and shipping costs that Nigeria must mitigate through strategic domestic interventions.
The Union argued that instead of returning to the old fuel subsidy regime, the government should mechanically lower pump prices by providing crude to local refineries at subsidized rates.
Furthermore, the TUC decried the “economic paralysis” caused by kidnappings and farm invasions, demanding an intelligence-driven security overhaul to protect the nation’s food supply and workforce.
The TUC’s proposal for “Crude-for-Refinery” subsidies represents a strategic shift in Nigeria’s energy economics.
By advocating for the use of revenue earned above the budget benchmark to subsidize crude supply to local refiners, the Union is pushing for a “Refining Cushion.”
This mechanism aims to decouple domestic pump prices from international volatility without the fiscal “black hole” associated with traditional petroleum subsidies.
Mechanically, this allows local refineries to produce cheaper fuel while the government retains the bulk of its foreign exchange from crude exports.
On the fiscal front, the demand for a 50% tax cut serves as a dual-action “Stimulus Package.” For manufacturers, it lowers the Cost of Production, potentially slowing the inflation of consumer goods.
For workers, it increases Disposable Income without necessitating a direct wage increase that could further drive inflation.
However, the TUC also issued a stern warning regarding Electricity Tariffs, insisting that Nigerians must not “pay for inefficiency.”
By demanding universal metering and an end to estimated billing, the Union is targeting the mechanical leaks in the power sector where consumers are billed for energy never delivered.
For the TUC, the 2026 agenda is clear: the government must move from “Hardship Policies” to “Structural Protection” or face a full mobilization of the Nigerian workforce.