The Nigeria Labour Congress (NLC) has strongly kicked against the Federal Government’s newly introduced tax policies, warning that the measures are placing unbearable pressure on Nigerian workers and could further worsen the country’s economic hardship.
Reacting to the reforms, the labour union accused the government of pushing workers to the edge, insisting that the policies were introduced without proper consultation or consideration for the realities facing salaried Nigerians.
The NLC said the direction of the tax reforms suggests a growing insensitivity to the struggles of ordinary citizens.
Speaking during a television interview, the Head of Information of the NLC, Benson Upah, expressed deep frustration over what he described as a systematic attempt to overburden workers through taxation.
He said the government failed to engage labour leaders before rolling out the new tax laws, despite workers being one of the most affected groups.
According to Upah, “Soon Oxygen Will Be Taxed,” a statement he used to highlight what the union views as excessive and relentless taxation by the Federal Government.
He said Nigerian workers are already stretched thin and warned that the government’s approach could lead to wider dissatisfaction.
Upah stressed that meaningful consultation is a core element of good governance and noted that its absence often leads to conflict. He explained that labour unions were not invited to discussions before the tax laws were passed, even though workers make up what he described as the largest taxpayer base in the country.
He added that the NLC had formally written to the government when the tax reform committee was being set up but received no response.
Since the laws came into effect, he said there has been little or no effort to properly educate workers on how the new policies would affect them.
The labour leader also questioned claims that low-income earners would be exempt from taxation. He explained that the assertion that people earning below one million naira annually would not be taxed does not reflect the current reality in the formal sector.
Upah argued that based on the national minimum wage structure, most formally employed workers earn above that threshold, making the supposed exemption ineffective. He warned that many workers who are already struggling would now face additional deductions from their earnings.
He further raised concerns over the inclusion of workers’ allowances in the new tax framework. According to him, allowances that were previously tax-free are now being brought under taxation, adding to existing financial obligations faced by workers.
Upah said the situation leaves workers with little breathing space, noting that apart from their income, nearly every aspect of their earnings is now subject to government deductions.
He remarked that the only thing not currently taxed is the air people breathe, using the comment to underline the severity of the situation.
The NLC also called for discreet engagement between labour leaders and the government to resolve the growing tension. Upah emphasized that when taxes are moderate and collection systems are efficient, citizens are more willing to comply.
He warned that aggressive tax policies without public trust or engagement could lead to resistance and deepen public frustration at a time when inflation and living costs remain high.