The Federal Government on Tuesday moved to calm rising tensions over the newly introduced Petroleum Products Tax, saying it has no immediate plan to implement the controversial five per cent levy.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the clarification at a press conference in Abuja amid mounting public backlash and threats of industrial action from organised labour.
“The five per cent Petroleum Products Tax is part of the new tax legislation, but there are no immediate plans to implement it,” Edun stated, stressing that the government would prioritize dialogue and economic stability over hasty execution.
The tax provision, buried in the recent fiscal reforms, sparked outrage among Nigerians who view it as another burden on households already struggling with rising fuel costs, inflation, and dwindling purchasing power.
Recently, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) issued a joint ultimatum demanding the suspension of the tax, warning that failure to do so could trigger a nationwide strike.
Labour leaders argue that the policy, if enforced, would worsen hardship and cripple essential sectors such as transport, health, and power that are heavily dependent on petroleum products.
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Edun, however, assured that the government was committed to cushioning the effects of economic reforms and would not “add unnecessary weight” on citizens. He added that consultations with stakeholders were ongoing to address the concerns.
The clarification comes as the administration continues to defend its broader fiscal and tax reforms aimed at raising revenue, improving transparency, and boosting growth.
Despite the reassurance, labour unions insist they will remain vigilant, saying Nigerians “cannot afford another round of punishing policies disguised as reforms.”
The coming days may prove decisive, as both government and labour weigh their options in what could become another showdown over fuel-related policies in Africa’s largest economy.