"Suspend Tax Law Now": NLC Tells Federal Government, Reason Emerges

• Organised labour in Nigeria has renewed its demand for the suspension of the new tax laws, warning that the reforms could deepen economic hardship for workers
• The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) said the laws were drafted without input from workers, describing them as regressive and unfair
• NLC President Joe Ajaero cautioned that continuing with the implementation risked eroding public trust and undermining democratic principles

The leadership of organised labour in Nigeria has again called on the Federal Government to suspend the implementation of the new tax laws, warning that the policy could trigger confrontation with workers across the country.

According to DailyTrust, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) said the drafting and implementation of the tax reforms excluded the voices of workers in both the private and public sectors.

Joe Ajaero criticises tax laws

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

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Daily Trust reported that calls for suspension of the tax reform laws signed by President Bola Tinubu had been growing, with opposition figures cautioning that the policy could worsen economic hardship and lead to serious social consequences.

Speaking at the event, Ajaero said the new tax laws placed additional financial burdens on low-income earners, insisting that the reforms increased hardship for workers and the poor. He argued that workers were deliberately excluded from the presidential tax reform process, despite being major taxpayers, and described the law as regressive.

He stated:

“The Tax Laws went through a process that clearly excluded Nigerian workers and masses who are the major tax payers in Nigeria. From the Presidential Committee on Tax which Nigerian workers were deliberately excluded, we knew that the workers and masses were going to be on the menu (‘eaten’); we said so and alerted the nation, then the Legislative processes; we warned of the dangers but no one listened."

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Labour says tax burden unfair

Ajaero alleged that the reforms imposed heavier taxes on those already struggling with economic hardship, adding that taxes affecting those earning the minimum wage could not be described as fair or progressive.

He warned that continuing with the implementation without addressing concerns could undermine public trust and democratic principles.

“Insisting on going ahead is akin the muddling along in confusion and darkness since we do not know which one is truly the Law. Continuing with this is a dangerous pattern that seriously undermines the Tax administration itself and indeed our democracy,” he said.

Call for review and engagement

The labour leader urged the government to review the tax laws and to fully constitute the PENCOM Board. He also called for more meaningful engagement with labour unions on policies affecting workers.

Ajaero reiterated the NLC’s demand for the government to address workers’ wages ahead of the next statutory national minimum wage negotiations. He added:

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“Let this celebration of a life spent organising inspire a new chapter. Let the government move from agonising the people to organising with them. Let us build a democracy that delivers not just political freedom but economic liberation; where the wealth of the nation serves the welfare of its people.”

He pledged that the NLC would continue to organise, challenge power, and fight for a Nigeria where no worker had to endure poverty, insecurity, heavy taxation, or a future burdened by national debt.

4 categories of Nigerians exempted from paying tax

Legit.ng earlier reported that Nigeria’s Fiscal Reforms announced that from January 1, 2026, new tax laws would come into effect, offering relief and exemptions to low-income earners, average taxpayers, and small businesses.

Officials said the changes were designed to ease the financial burden on citizens and encourage compliance with tax regulations.

Source: Legit.ng