The Nigeria Labour Congress (NLC) has criticized the tax regime of President Bola Tinubu’s administration, stating that workers now pay more taxes than the recently increased minimum wage.
Comrade Joe Ajaero, NLC President, made this assertion at the Tripartite Panel on Global Coalition for Social Justice at the UN House in Abuja.
“The tax regime today, some of the civil servants here pay more than the increase in minimum wage. What they were collecting before the minimum wage is higher than what they’re collecting now because of the tax regime,” Ajaero said.
Ajaero emphasized that the current tax regime has negated the benefits of the minimum wage increase, with some civil servants paying more in taxes than they receive from the wage hike. He also lamented the unbearable electricity tariff, lack of social safety nets, and unimplemented contributory pension policies.
“Electricity tariff is unbearable, people are paying for darkness in this country. We are talking about green energy, not a lot has happened in terms of going green, we are still paying more attention to fossil fuel with all the attendant health hazards and environmental pollution in this country,” Ajaero added.
The NLC President commended the Director General of the International Labour Organisation (ILO), Gilbert Houngbo, for prioritizing social justice. Houngbo stressed that lasting peace can only be achieved through social justice, emphasizing the importance of social dialogue in driving human-centered economic transformation.
“Social dialogue must drive human-centered economic transformation, including technological transformation, ensuring job creation aligned with fair wages, social protection, and sustainable practices,” Houngbo said.
Ajaero recommended a universal wage system and universal condition of service for workers, suggesting that countries adopt a global wage framework. “And we equally need to look at if it is possible, a universal or global wage system, even if we have indices like $50 or $20 and countries of the world key into it and we know where some of us are standing,” he said.
The ILO Director General urged Nigeria, as Africa’s largest economy, to lead by example in developing inclusive and sustainable labor policies. “As Africa’s largest economy, Nigeria has the responsibility to lead by example in developing inclusive and sustainable labor policies,” Houngbo said.
The Country Director for Nigeria, Dr. Vanessa Phala, emphasized the collaborative nature of the initiative, bringing together diverse voices to advance the social justice agenda.