Trade Union Congress Urges Federal Government to Redirect Excess Crude Revenue Toward Feedstock Subsidies for Local Refineries

The TUC urges the Nigerian government to use 60% of excess crude revenue to subsidize local refinery feedstock and reduce fuel prices toward 2,000 Naira.

By: AXL Media

Published: Apr 10, 2026, 10:33 AM EDT

Source: Information for this report was sourced from Leadership News

Strategic Intervention in Domestic Refining

The Trade Union Congress of Nigeria has formally presented a proposal to the federal government to stabilize soaring energy costs through a targeted crude oil subsidy. TUC President-General Comrade Festus Osifo suggested that at least 60 per cent of the excess revenue generated from crude oil sales—specifically funds exceeding the current budget benchmark—should be deployed to subsidize feedstock for domestic refineries. This measure is intended to directly lower production costs for local facilities, including the massive Dangote Refinery, thereby providing immediate relief to the Nigerian economy.

Leveraging Revenue Surpluses for Labor Relief

The proposal is built on the current economic reality where global crude oil prices significantly exceed Nigeria's budget benchmark of 64.85 dollars per barrel. This price gap generates a substantial revenue surplus that is typically shared among the three tiers of government. Osifo argued that redirecting a majority of this specific surplus toward the domestic refining sector would act as a mechanical lever to reduce the pump prices of Petrol (PMS), Diesel (AGO), and Aviation fuel (Jet A1) within a matter of weeks.

Addressing the Surge Toward 2,000 Naira Fuel

The TUC's warning comes as petrol prices in certain regions of the country approach 2,000 Naira per liter, a threshold that the labor center describes as an "unbearable pressure" on households and businesses. Osifo noted that the sharp rise in transportation and manufacturing expenses, fueled by global supply disruptions and geopolitical tensions, risks erasing the modest progress Nigeria has made in curbing inflation over recent months. By subsidizing the feedstock directly, the labor leader believes the government can bypass the complexities of retail subsidies and lower costs at the source.