he Nigeria Labour Congress (NLC) has condemned the government’s tax policies, accusing President Bola Tinubu’s administration of imposing a heavier tax burden on civil servants than the much-anticipated minimum wage increase.
Comrade Joe Ajaero, the President of the NLC, delivered a scathing critique of the country’s current tax regime during the ongoing discussions at the United Nations House in Abuja. He argued that despite the government’s promise of economic improvement, civil servants are losing more in taxes than the modest wage hike they received.
“Some civil servants are paying more in taxes than the increase in their minimum wage,” Ajaero remarked, pointing out that the financial situation for many workers has worsened. “What they were earning before the minimum wage increase is now less than what they take home after tax deductions.”
The NLC’s comments come on the heels of President Tinubu’s administration promising to improve the country’s economic outlook after removing the subsidy on petroleum products. However, Ajaero challenged the administration to show tangible results of the policy shift, asking, “Where are the roads the government promised to build with the expected revenue from subsidy removal?”
The labor leader also criticized the high electricity tariffs, calling them “unbearable” and accusing the government of providing inadequate services despite citizens paying for subpar utilities. “People are paying for darkness in this country,” he said, adding that the government’s failure to focus on renewable energy and green technology has further exacerbated Nigeria’s environmental and economic woes.
Ajaero’s criticism did not stop there. He lambasted the government’s shifting climate change promises, pointing out that the country’s ambitious zero-emission target for 2030 had been postponed to 2060. He attributed this delay to the government’s lack of serious efforts in transitioning from fossil fuels, despite the growing environmental concerns and health hazards.
Social Justice and Labour Reforms in Focus
During the discussions at the ILO’s Tripartite Panel on the Global Coalition for Social Justice, Ajaero applauded the Director-General of the International Labour Organization (ILO), Gilbert Houngbo, for highlighting the importance of social justice in ensuring global peace.
“I want to thank you for emphasizing social justice,” Ajaero said, addressing Houngbo directly. “In Nigeria, we are far from having a functional social safety net. Nigerians are left to fend for themselves, sinking boreholes for water and relying on private generators for power. There is no public transportation system in place to alleviate the burdens on workers.”
He also raised the issue of the nation’s pension system, lamenting that many companies have failed to remit deducted pension contributions for years. “How can we talk about social safety nets when companies are neglecting the pensions of workers?” he asked.
The NLC President also discussed the growing challenges of tax and energy justice in Nigeria, calling for a reformation in both areas. He suggested that the country’s tax system is not just punitive but unjust, disproportionately impacting the working class. Similarly, he urged the government to tackle energy justice, arguing that Nigerians are paying disproportionately high tariffs without corresponding improvements in service delivery.
Global Wage System Proposed
In a bold suggestion, Ajaero called for the introduction of a universal wage system, proposing that a baseline global wage be established, with countries adhering to set minimums depending on their economic realities. He stated, “If countries could agree to a standard, such as a $50 or $20 wage benchmark, it could help level the playing field and provide better clarity on where nations stand economically.”
Echoing this, he advocated for a universal condition of service that would ensure that workers across the globe are treated fairly, regardless of their national economy. “It’s essential for nations to have a framework that they can adhere to, ensuring fair wages and conditions of service for their workforce,” Ajaero emphasized.
The Broken Promises of Collective Bargaining
The NLC also raised concerns about the government’s failure to honor collective agreements reached with labor unions. Ajaero pointed out that even though agreements were made regarding increased tariffs, they were disregarded by telecom companies who implemented the hike despite ongoing negotiations.
“Negotiations are supposed to hold weight, but in Nigeria, they’re ignored,” Ajaero remarked. He cited the recent increase in tariffs, which occurred just weeks after a promise was made to discuss the issue with a committee of 10 people, two of whom were already unavailable by the time the hike was enforced. The NLC President argued that the sanctity of collective bargaining must be respected, stating, “When agreements are reached, they must be honored, whether it’s with the ILO or national bodies.”
He also lamented the failure of many corporations to implement the newly introduced minimum wage, even though it has been nearly a year since the policy was enacted. “It’s disheartening to see that the promises made to workers are being ignored,” he said, “The wages are not enough to combat the economic hardships workers face, especially with high taxes and mounting inflation.”
The Role of the ILO in Promoting Global Social Justice
Gilbert Houngbo, the Director-General of the ILO, emphasized that social dialogue must drive human-centered economic transformation. He stated that this transformation should focus on job creation, fair wages, social protection, and sustainable practices, all of which are crucial for achieving lasting peace and stability globally.
“Social dialogue must drive human-centered economic transformation, including technological advancement, ensuring job creation aligned with fair wages, social protection, and sustainable practices,” Houngbo asserted. He also highlighted Nigeria’s responsibility as Africa’s largest economy to lead by example in developing inclusive and sustainable labor policies.
