Why Nigerian Labour Is Against Proposed Tax Bill – Osifo

The President of the Trade Union Congress (TUC), Festus Osifo, has voiced the organised labour’s rejection of the Federal Government’s proposed tax bills, arguing that they place an undue burden on workers’ limited earnings.

Speaking at the 2025 May Day celebration in Abuja, Osifo condemned the bills for “unfairly targeting workers while leaving the rich and corporate elites largely unaffected.”

He firmly opposed the proposed legislation, labeling it as “anti-worker.”

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“The tax proposals were drafted without the involvement of workers.

“They impose heavy burdens on our meager allowances —housing, transport, and even medical benefits, yet fail to promote a progressive taxation system that ensures the rich pay their fair share,” he said.

Specifically, Mr. Osifo criticized the proposal to set the minimum taxable income at N800,000 per year, pointing out that this amount is only slightly less than the newly approved National Minimum Wage of N840,000 annually, or N70,000 per month.

“How can you tax someone earning, approximately the cost of just eight bags of 50kg rice in a year?

“This policy shows insensitivity to the plight of Nigerian workers amid soaring inflation and economic hardship,” he added.

He also condemned the proposed extension of Value Added Tax (VAT) to essential goods and the introduction of additional levies, cautioning that these policies would increase the cost of living and place a heavier burden on low-income earners.

The TUC president further drew attention to the challenges confronting the informal sector, claiming that small traders and artisans would be unfairly targeted through presumptive taxes and high compliance expenses.

“We demand the immediate withdrawal of the anti-worker tax bill.

“Nigeria needs a fair and inclusive tax system, one that exempts essential goods from VAT and provides real support to the informal sector,” he said.

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