NLC: New Tax Law Will Make Workers Poorer

NLC To Hold Peaceful Rally In Rivers On May Day To Advocate For Democracy NLC To Hold Peaceful Rally In Rivers On May Day To Advocate For Democracy
The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has criticised the recently enacted tax law, describing it as regressive and calling for its urgent review to protect workers and low-income earners.

Gatekeepers Newreports that Ajaero spoke on Wednesday in Abuja at the unveiling of the memoir of a former NLC president, Hassan Summonu, held to mark his 85th birthday. He said Nigerian workers were deliberately excluded from the tax reform process, despite being among the country’s largest contributors to tax revenue.

He said:

“The tax laws went through a process that clearly excluded Nigerian workers and masses who are the major taxpayers in Nigeria. From the Presidential Committee on Tax, which Nigerian workers were deliberately excluded from, we knew that the workers and masses were going to be on the menu. We warned of the dangers, but no one listened. Today, the result is clear: laws with serious alterations directed at making workers and the poor poorer have become the outcome.”

Ajaero argued that taxing workers on the national minimum wage was neither fair nor progressive.

“Tax that taxes the national minimum wage is not fair. Tax that taxes the masses who are living in excruciating poverty is regressive,” he said.

The labour leader urged the Federal Government to halt and reassess the legislation, warning that pressing ahead with its implementation could erode public confidence in governance and weaken the tax system itself.

He said:

“Insisting on going ahead is akin to muddling along in confusion and darkness since we do not know which one is truly the law. Continuing with this is a dangerous pattern that seriously undermines the tax administration itself and indeed our democracy.”

Ajaero also called for deeper engagement between the government and labour unions on policies affecting workers. He highlighted the need for the urgent constitution of the PENCOM Board and the resolution of wage-related issues ahead of the next round of national minimum wage negotiations.

He added:

“Let the government move from agonising the people to organising with them. Let us build a democracy that delivers not just political freedom but economic liberation, where the wealth of the nation serves the welfare of its people.”

Reaffirming the NLC’s commitment to workers’ welfare, Ajaero said the labour movement would continue to challenge policies that deepen hardship.

“We will continue to challenge power. We will continue to fight for a Nigeria where no worker has to agonise over poverty, insecurity, heavy taxation or a stolen future riddled with national debt,” he said.

Calls for the suspension of the tax reform law have continued to mount among opposition figures and labour groups, who warn that the policy could worsen economic hardship and trigger social unrest.