The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has criticised the recently enacted tax law, describing it as regressive and harmful to workers and low-income earners.
Ajaero made the remarks on Wednesday in Abuja during the unveiling of the memoir of former NLC President, Hassan Summonu, alongside activities marking Summonu’s 85th birthday.
According to the labour leader, Nigerian workers were deliberately excluded from the presidential tax reform process, despite being among the country’s largest taxpayers.
He said the exclusion resulted in a law that deepens hardship for workers and the poor.
“The Tax Laws went through a process that clearly excluded Nigerian workers and masses who are the major taxpayers in Nigeria,” Ajaero said.
“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. We alerted the nation and 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.”
Ajaero argued that any tax regime that places a burden on minimum wage earners cannot be described as fair or progressive.
“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,” he added.
He called on the Federal Government to pause and review the law, warning that pressing ahead without addressing concerns could undermine public trust and democratic principles.
“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 undermines tax administration and indeed our democracy,” Ajaero said.
He advised the government to focus on building credible institutions through inclusive lawmaking.
“When you bypass key stakeholders, distort acts of parliament, and rule by strong arm, you make a mockery of our democracy. 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 stated.
The NLC president also demanded the immediate and full constitution of the Pension Commission (PENCOM) Board and called for more meaningful engagement with labour unions on policies affecting workers.
“We demand that the Federal Government immediately and fully constitute the PENCOM Board and address the concerns of Nigerians on the Tax Law instead of the present grandstanding,” he said.
Ajaero further reiterated the NLC’s call for the government to address workers’ wages ahead of the next statutory national minimum wage negotiations.
He urged the government to prioritise economic justice, saying democracy must deliver not just political freedom but economic liberation.
“There have been growing calls for the suspension of the recently signed tax reform laws by President Bola Tinubu, with critics warning that the policy could worsen economic hardship and trigger serious social consequences,” he added.
