Fresh Controversy Trails Nigeria’s New Tax Laws as Labour, Politicians, Parties Clash

Fresh concerns have continued to trail the implementation of Nigeria’s new tax laws, with organised labour, political actors and tax professionals offering sharply different views on their intent, impact and legitimacy.

At a public event in Abuja marking the book launch and 85th birthday of a former Nigeria Labour Congress (NLC) president, Hassan Summonu, the current NLC leadership renewed its opposition to the reforms, warning that unresolved public concerns could weaken confidence in governance and tax administration.

NLC President, Joe Ajaero, accused the Federal Government of pressing ahead with the laws despite widespread objections, arguing that the process leading to their passage sidelined workers and ordinary Nigerians, whom he described as the backbone of the tax system.

He said the situation had created uncertainty over which provisions were legally binding, describing the development as governance by confusion.

According to Ajaero, the labour movement had earlier cautioned against excluding workers from deliberations of the Presidential Committee on Tax, a decision he said resulted in proposals that disproportionately affect low-income earners.

He maintained that the framework could not be regarded as progressive, insisting that policies which deepen hardship for workers and the poor undermine democratic principles and institutional trust.

“Tax law that imposes a heavy burden on workers and the poor is not progressive. Tax that taxes the national minimum wage is not fair. A tax that taxes the masses who are living in excruciating poverty is regressive.

That was why we were excluded from the committee and that was why our warnings went unheeded. We do not see anything wrong in pausing along this negative path, rethinking, and redirecting,” he said.

He further urged the government to respond directly to citizens’ concerns rather than, in his view, resorting to public posturing by officials involved in the reform process.

“Your legacy must be in crafting foundational and credible laws that strengthen institutions, not undermining them. When you bypass key stakeholders, distort acts of parliament, and rule by strong arm, you make a mockery of our democracy. You negate public trust and threaten national stability.

True democracy is not just about elections; it is about the rule of law, institutional integrity, and governance that serves the many, not the few,” Ajaero added.

However, the labour leader’s position drew a firm response from Senator Adams Oshiomhole, who represents Edo North, and who also spoke at the event.

Oshiomhole challenged the NLC to move beyond criticism and actively confront any provisions it considers harmful through engagement and legislative pressure.

“I listened to Ajaero, and he was agonising that minimum wage workers are asked to pay tax. Do you think that if you cry from here till tomorrow, it will stop? The lesson of Sunmonu is: if it is wrong, fight it. If you know it is wrong, fight it. Do not lament it,” Oshiomhole said.

He argued that emotional appeals would not alter public policy, stressing that reforms could only be changed through sustained advocacy and negotiation.

“The minimum wage is exempt from tax. So when you say minimum wage is being taxed, they will see that as a loophole and say he doesn’t know what he is talking about.

“The tax laws are subject to amendment the same way you negotiated a benchmark for the minimum wage,” he said.

As the debate widened, the Lagos State chapter of the All Progressives Congress (APC) dismissed criticisms of the reforms as politically motivated and driven by misinformation.

In a statement signed by its spokesperson, Mogaji Seye Oladejo, the party said the new tax framework was designed to protect vulnerable Nigerians while modernising the country’s revenue system.

The party maintained that low-income earners were either exempt from tax obligations or would pay less under the new structure, adding that claims of widespread hardship were misleading.

It argued that Nigeria’s reliance on an outdated, oil-dependent and fragmented tax system had long hindered economic growth, discouraged investment and enabled tax evasion.

According to the APC, the reforms aim to simplify compliance for businesses, particularly micro, small and medium enterprises, eliminate nuisance taxes and ensure that large corporations contribute fairly to national development. It also stressed that taxation remains central to funding infrastructure, healthcare, education and social protection.

“Contrary to the alarmist narratives peddled by the opposition, Nigerians earning within the lowest income brackets are either fully exempt or will experience reduced tax exposure under the new regime.

The reform targets efficiency, equity, and accountability, not punishment,” the statement said.

Yet, concerns about transparency persisted, with a Lagos-based Peoples Democratic Party (PDP) chieftain, Funso Doherty, raising alarm over what he described as multiple conflicting versions of the Nigeria Tax Administration Act circulating on official platforms.

In an open letter to the chairman of the Nigerian Revenue Service (NRS), Doherty said two versions of the gazetted law, bearing the same publication date and number but containing different provisions, were available for download on the agency’s website.

He noted that similar discrepancies appeared on the website of the Presidential Committee on Fiscal and Tax Reforms.

“You may wish to address this so that further controversy or confusion does not arise over which version of the law the NRS is actually implementing.

“Nigerians may also be wondering, as I still am, how there can be multiple versions of the same federal gazette publication that bear the same publication date and number but differ in content,” he said.

The letter, copied to key legal and fiscal authorities, comes amid ongoing public debate over the reforms, which officially took effect on January 1.

Meanwhile, tax professionals have sought to counter what they describe as widespread misinformation. The chairman of the Chartered Institute of Taxation of Nigeria, Abuja District, Ben Enamudu, dismissed claims that bank balances are taxed under the new regime, clarifying that only certain electronic transfers attract stamp duty.

“The narrative out there, which is the wrong narrative, is that the money in your bank account will be taxed. There is no provision for that in our tax laws. Nobody taxes the money in your bank account,” he said.

He explained that the applicable charge remains a N50 stamp duty on qualifying transfers, with exemptions for salary payments and transfers below N10,000, among others.

Enamudu also noted that essential goods and services remain exempt from value-added tax and highlighted rent relief measures introduced under the reforms.

As divergent interpretations continue to fuel public anxiety, stakeholders have called for clearer communication, stakeholder engagement and transparency to prevent further erosion of trust in Nigeria’s tax reform agenda.