The Nigeria Labour Congress (NLC) has warned that the combined effects of heavy taxation, low wages and rising national debt pose a serious threat to Nigeria’s economic and democratic stability.
The NLC President, Mr Joe Ajaero, made the assertion in Abuja on Wednesday while speaking at the book launch and 85th birthday celebration of a former NLC President, Mr Hassan Summonu.
Ajaero urged the Federal Government to urgently reconsider the newly introduced tax laws and re-engage organised labour and other critical stakeholders in policy formulation.
He accused the government of excluding workers and the poor from key policy decisions that directly affect their livelihoods, particularly in the area of taxation.
According to him, the process that produced the new tax laws deliberately sidelined Nigerian workers, who constitute the bulk of taxpayers in the country.
“The tax laws went through a process that clearly excluded Nigerian workers and the masses. From the Presidential Committee on Tax, workers were deliberately excluded, and we warned of the dangers,” he said.
Ajaero described the new tax regime as regressive, arguing that any tax policy that places additional burdens on people already living in extreme poverty is unjust.
“A tax that taxes the national minimum wage is not fair. A tax that imposes heavy burdens on people living in excruciating poverty is regressive,” he said.
The NLC president also raised concerns about public borrowing, questioning the utilisation of funds borrowed by the Federal Government and its impact on the future of the country.
He stressed that government policies on fuel pricing, taxation, wages and social services should be formulated through inclusive engagement with representatives of workers and the masses.
Ajaero called on the Federal Government to pause the implementation of the contentious tax laws, rethink them and redirect policy in a manner that protects workers and strengthens democratic institutions.
He further urged the government to immediately and fully constitute the Board of the National Pension Commission (PenCom) and address public concerns surrounding the tax laws.
According to him, insisting on implementing disputed policies amid widespread confusion undermines public trust, weakens tax administration and threatens national stability.
Ajaero reaffirmed the NLC’s commitment to organising and advocating for workers’ rights, saying the congress would continue to challenge policies that deepen poverty, insecurity and economic hardship in the country.