Taxing the poor is not reform – NLC threatens showdown demands immediate suspension of Tinubu’s tax law

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The leadership of organised labour has urged the Federal Government of President Bola Tinubu to immediately suspend the implementation of the newly enacted tax laws, warning that failure to do so could trigger widespread resistance from workers across the country.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) accused the government of excluding workers in both the public and private sectors from the drafting and implementation of the tax reforms, despite being the country’s largest group of taxpayers.

NLC President, Joe Ajaero, issued the warning on Wednesday in Abuja during the launch of a memoir in honour of former NLC President, Hassan Summonu, alongside celebrations marking his 85th birthday.

Ajaero said the new tax laws impose additional financial burdens on low-income earners and worsen the living conditions of workers and the poor. He described the legislation as regressive and unfair, particularly for Nigerians earning the national minimum wage.

According to him, labour unions were deliberately sidelined from the Presidential Committee on Tax Reform, a move he said signalled that workers’ interests were never considered.

“The tax laws went through a process that clearly excluded Nigerian workers and the masses, who are the major taxpayers,” Ajaero said. “From the outset, we warned the nation that the outcome would be laws designed to make workers and the poor poorer and that is exactly what we see today.”

He argued that any tax system that places heavier burdens on those already struggling with poverty cannot be described as progressive, stressing that taxing the minimum wage is fundamentally unjust.

Ajaero warned that pushing ahead with the implementation of the laws without resolving the concerns raised by labour would undermine public trust, weaken tax administration, and threaten democratic governance.

“Bypassing key stakeholders, distorting legislative processes, and ruling by force erodes democracy and national stability,” he said. “True democracy is not only about elections but about laws that strengthen institutions and serve the majority.”

The labour leader also called on the government to fully constitute the board of the National Pension Commission (PENCOM) and to engage labour unions more meaningfully in policymaking, particularly on issues affecting workers’ welfare.

He further reiterated the NLC’s demand for urgent action on workers’ wages ahead of the next statutory negotiation of the national minimum wage.

“Let this moment inspire a new chapter,” Ajaero said. “Let the government move from agonising the people to organising with them, and build a democracy that delivers not just political freedom, but economic liberation.”

He concluded by reaffirming labour’s commitment to continue challenging policies that worsen poverty, insecurity, heavy taxation, and the growing national debt burden on Nigerian workers.

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