The President of the Trade Union Congress (TUC), Mr. Festus Osifo, has voiced strong opposition to the Federal Government’s proposed tax bills, arguing that they place undue financial strain on workers’ already limited allowances.
Speaking at the 2025 May Day celebration held in Abuja on Thursday, Osifo criticised the tax proposals, stating they unfairly target workers while allowing the wealthy and large corporations to escape similar burdens.
He condemned the bills as “anti-worker,” stressing that they were developed without any input from labour representatives. “These tax proposals heavily impact our modest benefits — such as housing, transportation, and medical allowances — yet they fail to establish a fair taxation system that ensures the affluent contribute proportionately,” Osifo said.
In particular, he denounced the plan to set the minimum taxable income at ₦800,000 annually, pointing out that this figure is only slightly below the new National Minimum Wage of ₦840,000 per year (₦70,000 per month).
“How can you expect someone earning barely enough to afford eight 50kg bags of rice a year to pay tax? This policy blatantly disregards the harsh realities faced by Nigerian workers, especially in the context of rising inflation and economic distress,” he argued.
Osifo also criticised proposals to broaden the Value Added Tax (VAT) to include essential goods and introduce new levies, warning that such measures would further drive up the cost of living and disproportionately hurt low-income earners.
He raised concerns about the informal sector, warning that small-scale traders and artisans would be subjected to presumptive taxation and overwhelming compliance demands.
“We demand the immediate withdrawal of these anti-worker tax bills,” Osifo declared. “Nigeria needs a just and inclusive tax regime—one that exempts basic necessities from VAT and genuinely supports the informal economy.”
Turning to political issues, the TUC President called for comprehensive electoral reforms, citing a “crisis of political legitimacy” in the country. He urged President Bola Tinubu and the National Assembly to spearhead an inclusive reform process.
“This transcends party politics—it is a patriotic responsibility. All stakeholders, including workers, civil society, political groups, and youth, must collaborate to reform our electoral system, ensuring it is transparent, accountable, and genuinely representative,” he said.
Osifo emphasized that free and fair elections are vital to building a fair, just, and progressive nation.
For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.
