NLC Knocks FG Over New Tax Laws, Warns of Worsening Poverty

Photo: Comrade Joe Ajaero NLC President

By: Daniel Kanu

Editor

The Nigeria Labour Congress (NLC) has criticised the Federal Government over its newly introduced tax laws, warning that their current form and implementation could exacerbate poverty and deepen economic hardship for workers and low-income Nigerians.
NLC President, Mr. Joe Ajaero, raised the concerns on Wednesday in Abuja at the book launch and 85th birthday celebration of a former NLC President, Mr. Hassan Summonu.
Ajaero faulted the process through which the tax laws were formulated, saying organised labour and the wider public were excluded from critical consultations. He described the approach adopted by the Presidency and the National Assembly as undemocratic and detrimental to good governance.
According to him, labour had previously cautioned against the development but was ignored, a situation he said had resulted in policies that unfairly transfer the burden of economic hardship to workers.
He argued that taxing the national minimum wage and placing additional financial obligations on citizens already grappling with rising living costs violates the principles of equity and progressive taxation.
Ajaero also called for the immediate constitution of the board of the National Pension Commission (PENCOM), warning that prolonged delays undermine confidence in the pension system and weaken institutional credibility.
He further criticised what he described as inconsistencies and confusion surrounding the implementation of the tax laws, noting that conflicting statements by government officials could erode public trust in tax administration.
The NLC president urged the Federal Government to engage more meaningfully with organised labour in the formulation of policies on taxation, fuel pricing, wages and social services, stressing that the exclusion of key stakeholders often leads to instability and policy failure.
Reflecting on the broader state of the nation, Ajaero said the occasion also provided an opportunity to interrogate Nigeria’s rising debt profile and the impact of governance decisions on the working class. He called on the government to urgently address workers’ wage concerns ahead of the next statutory negotiation of the national minimum wage.
The event also featured the launch of Summonu’s memoir, Organise, Don’t Agonise, which Ajaero described as a call for workers’ unity, principled engagement and resistance against exploitation.
He reaffirmed labour’s commitment to the struggle for economic justice and a democracy that delivers improved living standards for the majority of Nigerians.
“Tax laws that impose heavy burdens on workers and the poor are not progressive. Taxing the national minimum wage is unfair, and taxing people already living in extreme poverty is regressive,” Ajaero said.
He urged the government to reconsider the policy direction, warning that pushing ahead without broad consensus would only compound confusion and threaten national stability.
“We will continue to organise, challenge power and fight for a Nigeria where no worker has to agonise over poverty, insecurity, excessive taxation or a future burdened by unsustainable debt,” he added.

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