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 excluded from the presidential tax reform process despite being major taxpayers, resulting in a law that increases 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 workers and the masses were going to be on the menu. We warned the nation, but no one listened. Today, laws with serious alterations aimed at making workers and the poor poorer have become the outcome.”
He described the law as regressive, stating that any tax policy that places a heavy burden on minimum wage earners and citizens already living in extreme poverty cannot be considered fair or progressive.
“Tax that taxes the national minimum wage is not fair. Tax that taxes the masses living in excruciating poverty is regressive,” he said, adding that this explained why labour’s warnings were ignored during the drafting process.
The labour leader called on the Federal Government to review the law, warning that proceeding with its implementation without addressing concerns could undermine public trust and democratic principles.
“Insisting on going ahead is akin to muddling along in confusion and darkness. Continuing on this path is dangerous and undermines tax administration and our democracy,” Ajaero said.
He urged the government to prioritise laws that strengthen institutions rather than weaken them, warning that bypassing key stakeholders and ruling by force negates democratic values and threatens national stability.
Ajaero also demanded the immediate and full constitution of the PENCOM Board and urged the government to engage labour unions more meaningfully on policies affecting workers.
He further reiterated the NLC’s call for the Federal Government to address workers’ wages ahead of the next statutory national minimum wage negotiations.
“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,” he said, pledging that labour would continue to challenge policies that worsen poverty, insecurity, and excessive taxation.
There have been increasing calls for the suspension of the newly signed tax reform laws, with opposition figures warning that the policy could worsen economic hardship and trigger serious social consequences.
