The implementation of Nigeria’s new N70,000 minimum wage has drawn backlash from workers nationwide due to alleged excessive taxation imposed by state governors. Complaints from all six geopolitical zones were voiced during the recent National Executive Council (NEC) meeting of the Nigeria Labour Congress (NLC) in Owerri, Imo State.
The NLC, led by Joe Ajaero and Emmanuel Ugboaja, criticized the exclusion of organized labor from discussions on the Tax Bill currently before the National Assembly. In a communiqué, the NLC stated:
“The primary aim of taxation is to generate revenue for running the government. However, the justification of any tax system lies in its impact on the lives of the people. A fair and equitable tax system must prioritize fiscal discipline, transparency, and effectiveness in the use of tax funds to deliver tangible benefits to the citizenry.”
Workers lament that the supposed benefits of the minimum wage have been nullified by increased taxes, leaving many worse off. A South-East labor leader remarked:
“The little gains the viral inflation ravaging the country should have left out of the new minimum wage, the governors have taken it away through excessive taxation.”
One exception is Kogi State, where workers successfully lobbied for a year-long tax relief. However, most governors are accused of neglecting citizens’ welfare despite substantial federal allocations and internally generated revenue.
As a response, the NLC plans to organize a national dialogue on taxation in Ibadan on Friday, January 10, 2025. The event will feature an expert presentation on tax reforms, allowing NEC and CWC members to assess their implications for workers.
This dialogue is expected to shape the NLC’s stance on the Tax Bill and inform their submission to the National Assembly.
