The Nigeria Labour Congress has issued a stern warning to the Federal Government, stating that persisting with the newly enacted tax laws represents a dangerous pattern that undermines the nation's tax administration and democratic principles.
NLC President Condemns Exclusion and Regressive Provisions
NLC President, Joe Ajaero, raised the alarm on Wednesday, January 7, 2026, in Abuja during the book launch and 85th birthday celebration of a former NLC president, Hassan Sunmonu. Ajaero accused the government of pushing ahead with laws crafted through a process that excluded Nigerian workers and the masses, who he described as the country's major taxpayers.
He argued that the proposed laws contain serious alterations aimed at impoverishing workers and the poor further. "Tax law that imposes a heavy burden on workers and the poor is not progressive. Tax that taxes the national minimum wage is not fair," Ajaero stated. He recalled that the NLC had warned about the dangers of excluding workers from the Presidential Committee on Tax, predicting they would be "on the menu."
Ajaero urged the government to pause and rethink the policy, directly addressing public concerns instead of what he termed grandstanding by the Taiwo Oyedele-led tax committee and the NRS chairman, Dr. Zacch Adedeji. He emphasized that true democracy is about the rule of law and institutional integrity, not ruling by strong-arm tactics.
Oshiomhole Urges NLC to Fight, Not Lament
In a contrasting charge at the same event, Senator Adams Oshiomhole told the NLC leadership to actively engage and fight the government over the laws if they believe them to be unjust. The senator representing Edo North advised against mere lamentation.
"I listened to Ajaero, and he was agonising that minimum wage workers are asked to pay tax. Do you think that if you cry from here till tomorrow, it will stop?" Oshiomhole said. He insisted that the correct approach is to fight perceived wrongs, as those who benefit from a system will not relinquish it willingly. He also clarified that the minimum wage is legally exempt from tax, suggesting that inaccurate arguments could weaken the NLC's position.
Lagos APC Defends Reforms, Blames Misinformation
The Lagos State chapter of the All Progressives Congress entered the fray, defending the tax reforms and attributing the criticism to misinformation and political mischief. In a statement by its spokesman, Mogaji Seye Oladejo, the party asserted that the new framework is not targeted at low-income earners.
The APC claimed the reform protects vulnerable groups through expanded exemptions and a progressive structure. It stated that Nigerians in the lowest income brackets are either fully exempt or will see reduced tax obligations. The party framed the reform as a necessary shift from an archaic, oil-dependent system to one focused on efficiency, equity, and accountability to fund national development.
Confusion Over Official Law Version and Expert Clarifications
Adding a layer of controversy, Lagos PDP chieftain Funso Doherty raised an alarm about conflicting versions of the gazetted Nigeria Tax Administration Act on official websites. In an open letter to the NRS chairman, Doherty noted that two different versions bearing the same publication date and number were available for download, containing materially different provisions.
Simultaneously, the chairman of the Chartered Institute of Taxation of Nigeria, Abuja District, Ben Enamudu, sought to clarify widespread misconceptions. He firmly dismissed claims that the new regime taxes money in bank accounts, explaining that only certain electronic transfers attract a N50 stamp duty. He detailed exemptions for salary payments, transfers below N10,000, and outlined new reliefs for tenants on rent payments.
As of the report's filing, the Nigerian Revenue Service had not responded to Doherty's letter, leaving a cloud of uncertainty over which version of the law is authentic and enforceable.
