During the 2025 May Day celebration in Abuja, Festus Osifo, the President of the Trade Union Congress (TUC), expressed strong opposition to the federal government’s proposed tax bill. Osifo argued that the legislation unfairly burdens workers, particularly those with limited earnings. He pointed out that the bill disproportionately targets the working class while leaving the wealthy and corporate elites unaffected.
Osifo criticized the bill for failing to involve workers in its drafting process and imposing heavy taxes on workers’ basic allowances, including housing, transport, and medical benefits. He noted that the proposals do not support a fair taxation system where the wealthy pay their fair share. Specifically, Osifo raised concerns about the plan to set the minimum taxable income at N800,000 annually, which is just slightly below the newly agreed National Minimum Wage of N840,000 per year. He argued that this figure was too low, given the high cost of living, and illustrated his point by comparing it to the cost of just eight bags of 50kg rice over a year.
Osifo also criticized the proposed expansion of the Value Added Tax (VAT) on essential goods and the introduction of new levies, warning that these measures would drive up the cost of living and disproportionately harm the poor. Furthermore, he highlighted the challenges faced by the informal sector, particularly small-scale traders and artisans, who would be burdened by presumptive taxation and excessive compliance costs.
The TUC President called for the immediate withdrawal of the tax bill, urging a fair and inclusive tax system that excludes VAT on essential goods and supports the informal sector. In addition, Osifo called for urgent electoral reforms to address the “crisis of political legitimacy” in Nigeria. He urged President Bola Tinubu and the National Assembly to initiate broad-based electoral reforms, emphasizing the need for transparency, accountability, and genuine participation in the electoral process.
Osifo’s remarks called for a more equitable and just system, one that addresses the needs of the working class and promotes fair political practices.
