Labour

May 15, 2025

Labour demands tax justice

Tax

By Victor Ahiuma-Young

Organised Labour has demanded tax justice in Nigeria, lamenting that the current tax system is skewed to impoverish workers and ordinary citizens.

In a joint statement, the Presidents of the Nigeria Labour Congress, NLC,  and the Trade Union Congress of Nigeria, TUC, Joe Ajaero and Festus Osifo, respectively, stated: “As workers, we stand united against the unjust tax bills that seek to bleed the working class dry. These bills, crafted without our input, impose heavy burdens on workers while letting the rich and corporations off the hook. They tax our meager allowances—housing, transport, even medical benefits—while failing to ensure a progressive system that makes the wealthy pay their fair share.

“This is not just an attack on our wallets; it is an attack on our dignity and survival in a time of crushing inflation and economic hardship. The National Minimum Wage stands at N70,000 per month or N840,000 per annum. Yet this government proposes to set the minimum taxable income at N800,000. This is insensitive to the suffering of the masses. How can you tax someone whose annual earnings amount to the equivalent of just eight bags of 50kg rice? How can you propose to tax not only workers earning at the threshold of the minimum wage but also those earning below it?

“The expansion of Value Added Tax, VAT, on essential goods and the introduction of new levies will spike the cost of living, hitting the poorest the hardest. Meanwhile, the bills do nothing to curb the reckless spending and corruption among those in power. Instead of squeezing workers, the government should be taxing the profits of big businesses and the obscene wealth of the elite. The so-called ‘development levy’ is nothing but a scheme to make the working class pay for the failures of the system.

“The informal sector—the backbone of our economy—is also under siege. Street hawkers and artisans face daily harassment and extortion under presumptive taxation, while small businesses are burdened with compliance costs that only stifle their growth. These bills are not about justice—they are about squeezing every last drop from those who toil, while the exploiters laugh all the way to the bank.

“We demand the immediate withdrawal of these anti-worker tax bills! No more policies made behind closed doors while workers are excluded. The current and proposed tax systems prey on workers’ incomes—PAYE (Pay As You Earn) is not paying us. We call for progressive taxation, VAT exemptions on essentials, and real support for the informal sector. Nigerian workers will not rest until tax justice is achieved—not for the rich, but for the millions who keep this nation running.”