The Nigeria Labour Congress has issued a strong warning against the planned implementation of the newly enacted tax reform laws, set to take effect on January 1, 2026.
The NLC stated it was not consulted during the drafting or enactment of the laws and expressed concerns over their timing, clarity, and potential impact on workers and businesses.
In a statement, the NLC argued that the reforms would exacerbate the financial burden on citizens, harm small businesses, and stifle economic activity. The labor body’s opposition sets the stage for a potential confrontation with the government if the implementation proceeds without further engagement.
However, the Manufacturers Association of Nigeria has endorsed the laws, describing them as business-friendly and beneficial to its members. This support contrasts sharply with the stance of small and medium-scale enterprises and the Employers Association for Private Employment Agencies of Nigeria, both of which have called for the suspension of the laws, citing inadequate stakeholder awareness and engagement.
In response, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, defended the reforms, warning that any delay would maintain the current tax regime, which he said disproportionately burdens workers and small businesses.
He also cautioned that postponing the reforms could lead to increased prices for essential goods and services, including food, healthcare, and education.
