TUC Head Calls Proposed Tax Legislation "Anti-Worker"; Rejection Stated

The President of the Trade Union Congress (TUC), Festus Osifo, has made it vocal about organized labor's resistance to the Federal Government's proposed tax bills. During the 2025 May Day event in Abuja, Osifo took a hard stance against the measures, stating they overwhelmingly target workers with little regard for the wealthy and corporate elite.

In our corner, we comprehend that Osifo equated these bills as "anti-worker," expressing grave concerns regarding their potential harmful impacts on the hardworking labor force.

Osifo expressed discontent toward the proposed tax framework due to various reasons, including its failure to account for worker input and the substantial financial strain it places on essential expenses like housing, transportation, and healthcare. According to Osifo's remarks, the tax legislation was drafted with negligible input from workers and fails to establish a progressive tax system that guarantees the affluent pay a fair share.

He specifically objected to the plan to establish the minimum taxable income at N800,000 annually (roughly the equivalent of eight bags of 50kg rice), which is only slightly higher than the National Minimum Wage of NGN 840,000 (approximately N70,000 monthly). Questioning the reasoning behind imposing taxes on an income bracket at such a meager level, he emphasized the insensitivity demonstrated by this policy in the midst of rampant inflation and economic hardships.

Osifo also expressed worry about the expanse of the Value Added Tax (VAT) on fundamental goods and the introduction of novel charges. These changes could intensify living expenses and have a particularly detrimental effect on the lower income segments of society.

He voiced a stern warning for the government to reconsider these measures, reiterating that doing so would magnify the cost of living for the average citizen.

In addition to the worries regarding the tax bills, Osifo underscored the difficulties faced by the informal sector, pointing to presumptive taxation, high compliance costs, and a lack of exemptions for basic goods as areas of concern.

Demanding the immediate withdrawal of these "anti-worker" tax bills, Osifo called for a fairer and more encompassing tax system that offers exemptions for essential goods from VAT and provides genuine assistance to the informal sector.

"The time for an equitable and comprehensive tax system has come. Nigeria's working class deserves fair treatment - not policies that further plunge them into hardship," he avowed.

Another matter of concern for Osifo centered around the political landscape and the urgency for reforms to tackle the crisis of political legitimacy in Nigeria. He encouraged President Tinubu and the National Assembly to commence an extensive electoral reform process, prioritizing transparency, accountability, and civic engagement within the elections.

"To build a truly just, democratic, and prosperous society, transparent and credible elections are essential," Osifo asserted emphatically.

Festus Osifo closed his speech by underlining the TUC's unwavering commitment to advocating on behalf of workers' rights and protecting them against policies that do not prioritize their welfare.

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The President of the Trade Union Congress (TUC), Festus Osifo, strongly opposed the Federal Government's proposed tax bills during the 2025 May Day event in Abuja, labeling them as "anti-worker."
Osifo emphasized that the proposed tax bills, with their excessive burden on workers, overlook the wealthy and corporate elite, and fail to establish a progressive tax system.
He specifically criticized the plan to establish the minimum taxable income at N800,000 (roughly the equivalent of eight bags of 50kg rice), given the prevailing inflation, economic hardships, and the National Minimum Wage of NGN 840,000 (approximately N70,000 monthly).
Osifo also raised concerns about the expansion of the Value Added Tax (VAT) on essential goods and the introduction of new charges, which could exacerbate living expenses and affect the lower income segments of society more adversely.
Demanding a fairer and more inclusive tax system, Osifo called for exemptions for essential goods from VAT and support for the informal sector, which faces challenges due to presumptive taxation, high compliance costs, and a lack of exemptions for basic goods.
Moving beyond the tax bills, Osifo called for an extensive electoral reform process under the new administration of President Tinubu, stressing the importance of transparency, accountability, and civic engagement within the elections to build a truly just, democratic, and prosperous society in Nigeria.