The Nigeria Labour Congress (NLC) has warned that it may mobilise resistance against plans to begin implementing newly signed tax reform laws from January 1, 2026, saying workers were completely excluded from the process.
The labour union said it was neither consulted during the drafting of the laws nor properly informed after they were passed by the National Assembly and signed by President Bola Tinubu. According to the NLC, the lack of engagement, poor public awareness and unclear implementation framework could worsen the hardship already faced by workers and small businesses.
While labour and several private sector groups are demanding a pause, the Manufacturers Association of Nigeria (MAN) has thrown its weight behind the reforms, describing them as business-friendly and long overdue.
The tax reform package became law on June 26, when President Tinubu signed four major bills aimed at restructuring Nigeria’s tax system. The laws include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act and the Joint Revenue Board (Establishment) Act, all operating under the newly created Nigeria Revenue Service.
However, controversy has followed the reforms. A lawmaker, Abdussamad Dasuki, recently alleged that the versions of the tax laws released to the public differ from what lawmakers debated and approved, raising concerns about transparency.
Labour Raises the Alarm
Speaking on the matter, NLC spokesperson Benson Upah said organised labour had rejected the laws outright, insisting that workers were kept in the dark despite being the largest contributors to tax revenue in the country.
“At the level of the congress, we don’t even know what these laws contain, yet workers are the biggest tax-paying group in Nigeria. There has been no sensitisation or public education for labour. This is disrespectful to citizens,” Upah said.
He stressed that public enlightenment must come before any implementation, warning that secrecy around tax collection, enforcement and usage could trigger mass resistance.
“We are hearing about tax agents and enforcement mechanisms, but everything is opaque. If the process of collecting and using taxes is not transparent, the people will revolt. Labour will revolt,” he warned.
Upah also criticised the exclusion of labour from the tax reform committee, describing it as unacceptable.
“How do you make laws that affect workers without their input? Nobody has invited us to explain or clarify anything. When taxes are high and their use is unclear, people resist. That is the reality,” he added.
Another senior NLC official, who spoke anonymously, said labour was even considering pushing for the complete scrapping of the laws, accusing the Federal Government of ignoring key stakeholders.
Small Businesses Call for Suspension
Small and medium-scale business operators also expressed concern over the planned rollout. The President of the Association of Small Business Owners of Nigeria, Femi Egbesola, said implementing the laws without proper understanding among micro and small enterprises could backfire.
“You don’t implement what people do not understand. Most MSMEs are not aware of the details of this law. If you force it, the outcome may be failure,” he said.
Egbesola noted that about 87 per cent of Nigeria’s estimated 40 million MSMEs are micro businesses, stressing that communication with them must be simple and deliberate.
He warned that poor awareness could lead to resistance and low compliance, calling for a pilot phase before full implementation.
“When a reform cuts across the entire economy, you should test it first. A pilot phase of two or three months would help,” he said.
Similarly, the Employers Association for Private Employment Agencies of Nigeria called for a temporary suspension of implementation to allow for proper verification of the alleged discrepancies in the law and wider stakeholder engagement.
Its Executive Secretary, Jide Afolabi, said a pause would help prevent confusion and unintended compliance problems, while also allowing time for clearer guidelines.
Manufacturers Back the Reforms
In contrast, the Manufacturers Association of Nigeria welcomed the new tax laws, saying they would ease the burden on businesses, especially manufacturers.
MAN’s Director-General, Segun Ajayi-Kadir, said the reforms would eliminate multiple and “nuisance” taxes imposed by state and local authorities, which often lead to harassment of businesses.
“We are looking forward to an end to illegal levies and roadblocks for tax collection. Manufacturers expect to operate more freely under the new regime,” he said.
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Ajayi-Kadir added that companies with turnovers below N100 million would be exempt from company income tax, value-added tax and withholding tax, describing it as a major relief for struggling small businesses.
He also noted that lower company income tax rates would encourage reinvestment and attract investment, while low-income earners would be exempt from tax entirely.
According to him, the introduction of a tax ombuds would protect taxpayers from abuse.
“I honestly don’t see any group that will be worse off from January 1, 2026. Even those paying higher taxes are compensated through business benefits,” he said.
As debates continue, the fate of the tax reforms now hangs between government determination to proceed, labour’s threat of resistance, and growing calls for wider consultation and clarity before implementation.
