The Nigeria Labour Congress (NLC) has strongly condemned the recently implemented tax reform laws as regressive and unjust, accusing them of imposing additional hardship on workers and those already living in extreme poverty.
NLC President Joe Ajaero described the reforms as a direct assault on the poor, arguing that any taxation targeting individuals earning the national minimum wage or struggling with excruciating poverty cannot be considered fair or progressive.
Speaking on Wednesday in Abuja during the unveiling of a memoir honouring former NLC President Hassan Summonu and the celebration of his 85th birthday, Ajaero emphasised that the laws place an unfair financial burden on low-income earners.
“The tax laws went through a process that clearly excluded Nigerian workers and the masses, who are the major taxpayers in this country,” Ajaero said.
“From the Presidential Committee on Tax, Nigerian workers were deliberately excluded, and we warned the nation of the dangers.
Today, the result is clear—laws with serious alterations directed at making workers and the poor poorer.”He further stated:
“Tax that taxes the national minimum wage is not fair. Tax that taxes the masses who are living in excruciating poverty is regressive.”
Ajaero called for an immediate pause to the implementation, urging the Federal Government to rethink and redirect the policy through inclusive consultation.
The controversial tax reforms, signed into law by Bola Tinubu on June 26, 2025, comprise four major bills: the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
These laws, which took effect on January 1, 2026, aim to modernise Nigeria’s tax system by consolidating fragmented statutes, enhancing revenue collection, introducing digital filing mechanisms, broadening the tax base, and establishing new institutions like the Nigeria Revenue Service to replace the Federal Inland Revenue Service.
Proponents of the reforms argue that they will simplify compliance, reduce multiple taxation, boost government revenue to support development, and create a more efficient and transparent fiscal framework.
However, the changes have sparked widespread criticism, particularly from organised labour, who claim the process sidelined key stakeholders such as workers’ unions despite their significant contribution to the tax base.
Ajaero’s remarks echo earlier concerns raised by the NLC in late 2025, including calls in his Christmas message for Nigerians to reject what the union described as potentially “distorted” or inadequately consulted tax policies.
The latest criticism comes amid growing demands for the suspension of the laws, with opposition figures and labour groups warning that they could exacerbate economic hardship, erode public trust, and lead to social unrest in an already challenging economic environment marked by high inflation and living costs.
The NLC president reaffirmed the union’s commitment to continued advocacy, stating:
“We will continue to organise. We will continue to challenge power. We will continue to fight for a Nigeria where no worker has to agonise over poverty, insecurity, heavy taxation or a stolen future riddled with national debt.”
Ajaero also used the occasion to reiterate demands for urgent action on workers’ wages ahead of upcoming national minimum wage negotiations, as well as the full constitution of the National Pension Commission (PENCOM) board.
The Federal Government has so far maintained that the reforms are essential for sustainable revenue generation and economic stability, dismissing calls for suspension.
As implementation rolls out nationwide, the clash between labour’s position and the administration’s fiscal agenda is expected to intensify public debate over tax justice and economic equity in Nigeria.
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