By Chiagoziem Abosi
Edited by Bababunmi Agbebi
The Nigeria Labour Congress (NLC) has rejected any move that could subject minimum wage earners to income tax, arguing that workers on the country’s lowest pay scale are already struggling with rising living costs.
The labour union’s position comes amid ongoing discussions around Nigeria’s tax reforms and efforts by the Federal Government to expand revenue generation.
According to the NLC, taxing workers who earn the national minimum wage would place an additional burden on households already grappling with inflation, rising transportation costs, food prices, and housing expenses.
Labour leaders maintain that the purpose of a minimum wage is to guarantee a basic standard of living for workers. Any tax deduction from that income, they argue, would weaken the protective role the minimum wage is intended to serve.
For workers in Lagos, including many residents of Ikeja who depend on salaries to meet daily expenses, the issue is particularly significant. Rising transportation fares, rent costs, and food prices have increased pressure on household budgets, making any potential deduction from wages a sensitive topic.
The ongoing conversation is therefore expected to focus on where the line should be drawn between revenue generation and social protection.
As discussions continue, the NLC has made its position clear: workers earning the minimum wage should remain exempt from taxation.
