President of the Nigeria Labour Congress, Joe Ajaero, has criticised the recently enacted tax law, saying it excludes workers’ input and places additional financial burden on low-income earners.
Ajaero stated this on Wednesday in Abuja during the unveiling of the memoir of former NLC President, Hassan Summonu, and the celebration of his 85th birthday.
He said workers were deliberately left out of the presidential tax reform process, despite being major taxpayers.
According to him, the result was a law that increases hardship on workers and the poor.
He said, “The Tax Laws went through a process that clearly excluded Nigerian workers and masses who are the major taxpayers 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. Today, the result is clear, Laws with serious alterations directed at making workers and the poor poorer have become the outcome.
“Tax Law that imposes a heavy burden on workers and the poor is 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. That was why we were excluded from the Committee and that was why our warnings went unheeded. We do not see anything wrong in pausing along this negative path, rethinking, and redirecting.”
Ajaero described the law as regressive, alleging that it imposes heavier taxes on those already struggling with economic hardship.
He said taxes affecting those earning the minimum wage could not be described as fair or progressive.
The labour leader called on the Federal Government to review the law, warning that continuing with its implementation without addressing concerns could undermine public trust and democratic principles.
Ajaero said, “Insisting on going ahead is akin to 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.
“We advise this government; your legacy must be in crafting foundational and credible Laws that strengthen institutions, not undermining them.
“When you bypass key stakeholders, distort acts of parliament, and rule by strong arm, you make a mockery of our democracy. You negate public trust and threaten national stability. True democracy is not just about elections; it is about the rule of law, institutional integrity, and governance that serves the many, not the few.”
He also urged the government to fully constitute the PENCOM Board and engage labour unions more meaningfully on policies affecting workers.
“We use this platform to demand, as Comrade Sunmonu would have, that the Federal Government immediately and fully constitute the PENCOM Board and address immediately the concerns of Nigerians concerning the Tax Law instead of the present grandstanding by Mr Oyedele and Zach,” he added.
Ajaero further reiterated the NLC’s demand for the government to address workers’ wages ahead of the next statutory national minimum wage negotiations.
He said, “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. It is on this note that we once again call on the Federal Government to urgently address the Wages of Nigerian workers before next year’s statutory negotiation of the National Minimum Wage.
“Comrade Summonu, as we launch your book today, we pledge to keep its central message alive. 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.”
There have been growing calls for the suspension of the recently signed tax reform laws by President Bola Tinubu, with opposition figures warning that the policy could worsen economic hardship and lead to serious social consequences.
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