NLC Warns FG: Tax Laws Will Worsen Poverty

The Nigeria Labour Congress (NLC) has warned the Federal Government that the new tax laws could worsen poverty and deepen hardship among Nigerian workers and the poor if they are not urgently reviewed.

NLC President, Joe Ajaero, raised the concern in Abuja at the book launch and 85th birthday celebration of former NLC President, Hassan Summonu, yesterday.

Ajaero said the tax laws were formulated without the input of workers and the masses, describing the process as exclusionary and harmful to democratic governance.

“Tax laws that impose heavy burdens on workers and the poor are not progressive. Tax that taxes the national minimum wage is not fair. Tax that taxes the masses who are living in excruciating poverty is regressive.

“We see nothing wrong in pausing along this negative path, to rethink and redirect.

“Insisting on going ahead is like muddling along in confusion and darkness because we do not know which one is truly the law.

“Bypassing key stakeholders, distorting acts of parliament and ruling by strong arm make a mockery of our democracy and threaten national stability. Let the government move from agonising the people to organising with them.

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

He noted that organised labour had earlier cautioned against the approach but was ignored, resulting in policies that shift the burden of economic hardship to workers.

The labour leader stressed that taxing the national minimum wage and imposing heavier obligations on people already struggling with rising living costs runs contrary to the principles of fairness and progressive taxation.

The NLC president also called for the immediate constitution of the National Pension Commission (PENCOM) board, warning that continued delay undermines confidence in the pension system and weakens institutional credibility.

He criticised the confusion surrounding the implementation of the tax laws, saying conflicting positions by government officials risk undermining tax administration and public trust.

Ajaero urged the Federal Government to engage more sincerely with organised labour in the formulation of policies on taxation, fuel pricing, wages and social services, arguing that exclusion of key stakeholders often leads to instability and policy failure.

Reflecting on the state of the nation, he said the occasion was also a moment 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 the issue of workers’ wages ahead of the next statutory negotiation of the national minimum wage.

The event also marked the launch of Summonu’s memoir, Organise, Don’t Agonise, which Ajaero described as a rallying call for workers’ unity, principled engagement and resistance against exploitation.

He said the labour movement would continue to push for economic justice and a democracy that delivers improved living standards for the majority of Nigerians.

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