Labour Rejects Minimum Wage Taxation, Demands New Living Wage Structure

The President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has strongly rejected any proposal to impose tax on the National Minimum Wage, insisting that Nigerian workers are already under severe economic pressure and should not be further burdened.

Ajaero made the position of organised labour known while speaking with journalists on the sidelines of the 114th Session of the International Labour Conference (ILC) in Geneva, Switzerland, where labour leaders, employers, and government representatives from around the world are discussing global labour standards and workers’ welfare.

He described any move to tax minimum wage earners as “unjust and insensitive,” warning that such a policy would worsen the hardship faced by low-income workers across Nigeria.

“We reject outright any attempt to tax the minimum wage or place levies on poor Nigerian workers,” he said, stressing that workers at the lowest income bracket should be protected rather than further constrained.

According to him, the current minimum wage structure no longer reflects Nigeria’s economic realities, given the persistent rise in inflation, food prices, transportation costs, and general cost of living.

He argued that what workers currently earn is insufficient to sustain basic household needs.

Ajaero further called for a shift from the existing minimum wage framework to a “living wage” structure that would more realistically match present-day economic conditions. He said Nigerian workers deserve a wage that guarantees dignity and covers essential living expenses.

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

He also announced that organised labour would soon begin preparations for a fresh round of negotiations on the national minimum wage, noting that the process is expected to commence by July 2026 to avoid delays and bureaucratic setbacks experienced in previous negotiations.

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

The NLC president emphasised that the negotiation process would remain a tripartite arrangement involving the federal and state governments, organised labour, and private sector stakeholders to ensure fairness and balance.

Ajaero pointed out that several states in Nigeria have already begun paying above the current national minimum wage benchmark, suggesting that higher wage structures are already feasible within the country.

“Some states are paying N85,000, some are paying N100,000. It shows that N70,000 is no longer realistic or relevant,” he added.

He urged governments at all levels to introduce immediate relief measures for workers pending the conclusion of wage negotiations, warning that failure to act could deepen economic hardship among vulnerable households.

Ajaero reaffirmed that the labour movement would continue to defend workers’ rights and resist any policy seen as worsening poverty or undermining collective bargaining gains, expressing optimism that ongoing discussions would lead to a fair and sustainable wage framework for Nigerian workers.