NLC Condemns New Tax Laws, Demands Urgent Review of Minimum Wage

By Chinedu Echianu

The Nigeria Labour Congress (NLC) has raised strong concerns over recent tax reforms, warning that provisions taxing the national minimum wage and placing heavier burdens on low-income earners are unfair and regressive. It also called on the Federal Government to urgently address workers’ wages ahead of the next statutory minimum wage negotiations.

Speaking in Abuja on Wednesday, NLC President, Comrade Joe Ajaero, said the new tax laws were formulated without the input of Nigerian workers, who he described as the country’s major taxpayers. He argued that excluding labour from the Presidential Committee on Tax and subsequent legislative processes resulted in laws that worsen poverty rather than promote equity. According to him, any tax regime that targets workers’ wages, especially the minimum wage, cannot be described as progressive.

Ajaero made the remarks during the launch of the memoir and 85th birthday celebration of a former NLC President, Comrade Hassan Summonu. He said the situation reflected a broader failure of government to engage sincerely with organised labour on key policies, including taxation, fuel pricing, wages and social services.

The NLC President warned that the ongoing controversy surrounding the tax laws, including conflicting interpretations of what constitutes the valid legal framework, poses a serious threat to tax administration and democratic governance. He called on the Federal Government to immediately address public concerns over the laws and to fully constitute the board of the National Pension Commission (PENCOM), rather than, in his words, “muddling along in confusion and darkness.”

Beyond taxation, Ajaero stressed the urgency of improving workers’ welfare, urging the government to tackle wage issues before the next round of national minimum wage negotiations. He said rising poverty, heavy taxation and growing national debt were placing unbearable pressure on Nigerian workers, warning that continued exclusion of labour from policy-making could undermine public trust and national stability.

The NLC President concluded by reaffirming the union’s commitment to defending workers’ interests, drawing inspiration from Comrade Summonu’s legacy of organising for justice and dignity. He said the labour movement would continue to challenge policies that deepen inequality and push workers further into hardship.