The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has criticised the newly enacted tax law, describing it as regressive and urging the Federal Government to suspend and review the legislation to shield workers and low-income earners.
Ajaero spoke on Wednesday in Abuja at the unveiling of the memoir of a former NLC president, Hassan Summonu, during an event marking Summonu’s 85th birthday.
He said Nigerian workers were excluded from the tax reform process despite being the country’s largest contributors to tax revenue.
According to the labour leader, the composition and work of the Presidential Committee on Tax Reforms sidelined organised labour, a development he said signposted the eventual impact of the law on workers and the poor.
"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,” he said.
He argued that provisions which permit the taxation of the national minimum wage could not be described as progressive, particularly amid rising living costs and widespread economic hardship.
"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.
Ajaero warned that pressing ahead with the law without broad consensus could weaken confidence in governance and the tax system itself, adding that uncertainty surrounding aspects of the legislation risked creating administrative confusion.
He also called for deeper engagement between government and labour unions on policies affecting workers, including the immediate constitution of the board of the National Pension Commission (PENCOM) and discussions on wages ahead of the next statutory national minimum wage negotiations.
Urging a shift in approach, the NLC president said policy-making should prioritise collaboration with citizens rather than impose additional burdens.
He pledged that the congress would continue to organise and advocate for workers’ welfare, insisting that labour would challenge policies that deepen poverty, insecurity and economic inequality.
In recent days, calls for the suspension of the tax reform law have intensified, with opposition figures and labour groups warning that its implementation could worsen economic pressures and heighten social tension.
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