The Nigeria Labour Congress (NLC) has raised the alarm over plans to implement the new tax reform laws starting January 1, 2026, warning of possible revolt if the government proceeds without proper stakeholder engagement.
The union said it was kept in the dark during the drafting and passage of the laws by the National Assembly and President Bola Tinubu, expressing concerns over timing, lack of clarity, and potential negative impacts on workers and small businesses. According to the NLC, the reforms could increase the tax burden on citizens and slow economic activity.
Benson Upah, spokesperson for the NLC, told Sunday PUNCH that organised labour remains uninformed about the content of the laws despite workers being the largest tax-paying group in the country. He called for public enlightenment, transparency in tax collection, and clarity on the role of proposed tax agents.
“At the level of the congress, we do not even know what these laws contain. There has been no sensitisation or public education directed at the labour community. The right to know is not a privilege; it is a right,” Upah said. He warned that failure to address these issues could trigger protests not only from the NLC but also from the wider citizenry.
Similarly, Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), called for a suspension of the laws, arguing that most micro, small, and medium enterprises (MSMEs) do not understand the new regulations. He urged a pilot phase to test the reforms before full implementation to avoid potential failure.
Jide Afolabi, Executive Secretary of the Employers Association for Private Employment Agencies of Nigeria (EAPEAN), also supported a temporary halt, citing discrepancies between the versions of the law passed by the National Assembly and the gazetted copy released to the public. He recommended reconciliation of the versions and wider stakeholder consultation to ensure smooth compliance.
On the other hand, the Manufacturers Association of Nigeria (MAN) has thrown its support behind the reforms. MAN Director-General Segun Ajayi-Kadir described the laws as business-friendly and beneficial, promising relief from nuisance taxes levied by sub-national authorities.
He highlighted that companies with turnovers below N100 million would be exempt from company income tax, value-added tax, and withholding tax, while low- and middle-income earners would benefit from additional reliefs. Ajayi-Kadir also welcomed the creation of a tax ombudsman to protect taxpayers and ensure transparency in tax collection.
“The reforms are positioned to help businesses, particularly small and medium-scale industries, while creating room for reinvestment and attracting investment,” he said. “Even high earners will benefit fairly under the new regime.”
The tax reform laws, signed by President Tinubu on June 26, include the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, all operating under the unified Nigeria Revenue Service.
