NLC rejects Tax on minimum wage, demands living wage for Nigerian workers

Business Pointers

The Nigeria Labour Congress (NLC) has firmly opposed any move to impose taxes on the national minimum wage, insisting that Nigerian workers deserve a living wage capable of meeting the realities of the country’s rising cost of living.

NLC President, Mr. Joe Ajaero, made the position known while speaking with journalists on the sidelines of the 114th Session of the International Labour Conference (ILC) in Geneva, Switzerland.
Ajaero described any proposal to tax minimum wage earners as unjust, insensitive and detrimental to workers already grappling with severe economic challenges.

“We reject outright any attempt to tax the minimum wage or place levies on poor Nigerian workers,” he declared.

The labour leader argued that the current wage structure no longer reflects prevailing economic realities, citing persistent inflation, escalating food prices, transportation costs and other living expenses that have significantly eroded workers’ purchasing power.

According to him, organised labour is preparing to commence fresh negotiations for a new national minimum wage, with the process expected to begin by July 2026.

He said the NLC would formally communicate its position to the government immediately after the conference, calling for the commencement of discussions to avoid the delays and administrative bottlenecks experienced during previous wage reviews.

“As soon as we leave here, we shall write again to government, demanding commencement of the process for renegotiating the National Minimum Wage,” Ajaero said.

The NLC president stressed that labour’s demand extends beyond a mere increase in wages, insisting that Nigerian workers should be paid a genuine living wage that reflects current economic conditions and enables them to meet their basic needs.

“We demand nothing less than a genuine living wage that reflects today’s high-speed economic realities facing Nigerian workers,” he added.

Ajaero also urged the federal, state and local governments to introduce immediate relief measures to cushion the effects of economic hardship on workers pending the conclusion of wage negotiations.

He warned that failure to provide support could further worsen the living conditions of low-income earners already struggling with soaring prices of essential goods and services.

The labour leader reiterated that the minimum wage review process would remain a tripartite engagement involving government, organised labour and private sector representatives to ensure a fair and balanced outcome.

He pointed to examples of several state governments already paying above the current national minimum wage of ₦70,000, arguing that higher wage structures are both realistic and achievable.

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“Some states are paying ₦85,000, some are paying ₦100,000. It shows that ₦70,000 is no longer realistic or relevant,” he said.

Ajaero called on state governors to demonstrate leadership by improving workers’ welfare ahead of the formal commencement of national wage negotiations.

He reaffirmed the commitment of organised labour to defending workers’ rights and resisting policies that could worsen poverty or undermine gains achieved through collective bargaining.

The NLC president expressed confidence that the forthcoming wage review process would produce a more realistic, equitable and sustainable wage structure capable of improving the welfare of Nigerian workers and supporting economic productivity.

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