The Nigeria Labour Congress (NLC) has called for meaningful discussions with the Federal Government about the proposed Tax Reform Bill, emphasizing its potential impact on Nigerian workers.
Speaking at the unveiling of Compressed Natural Gas (CNG) buses for the union’s Southwest chapters in Ibadan, NLC President Joe Ajaero highlighted key concerns. Ajaero noted that while the Bill exempts workers earning below ₦800,000 annually from taxes, the reality is that most public servants earn above this threshold, making the majority of workers subject to the proposed taxes.
He explained, “If the baseline is ₦70,000 per month, nearly all workers in Nigeria will fall under the new tax structure. Dialogue is necessary to address these issues and clarify how the Bill affects workers.”
Tax expert Professor Godwin Oyedokun from Lead City University also weighed in, urging the government to focus on taxing luxury lifestyles rather than placing burdens on low-income earners. He warned against “taxing poverty” and suggested targeting informal sectors and digital businesses to increase revenue.
Professor Oyedokun encouraged collaboration between the NLC and the government to ensure reforms are fair and beneficial. He cautioned against opposition driven by self-interest, advocating for a balanced approach to policy discussions.
In a related event, Governor Seyi Makinde of Oyo State, represented by Deputy Governor Barrister Bayo Lawal, unveiled the CNG buses donated by the Federal Government to the NLC. He stressed the importance of cooperation between the government and the union to address worker’s needs effectively.