The Struggle for Fairness in Nigeria’s Tax System
The current situation in Nigeria reflects a growing divide between the government and its citizens. While certain groups seem to benefit from the existing policies, the majority of Nigerians are struggling to keep up with the rising costs and demands placed upon them. This disparity is particularly evident in the way trade unions and other labor organizations are handling the challenges faced by workers and the general populace.
Trade unions, such as the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and their affiliates like NUPENG and PENGASSAN, are expected to advocate for the rights of workers and the poor. However, it seems that these organizations have failed to live up to their responsibilities. Instead of standing firm on issues concerning workers’ welfare, they often find themselves in positions where they are not able to protect the interests of their members.
Pensioners and Workers Left in the Lurch
Pensioners at both the state and federal levels are facing dire circumstances. Many are dying without receiving their due gratuities and pensions, highlighting a systemic failure in the management of public funds. Similarly, government agencies and parastatals are not adhering to minimum wage laws, while private establishments are even worse in their treatment of employees. It is only when these unions see direct benefits to themselves that they consider taking action, such as strikes.
Unionism should be more than just threats and disruptions; it should be a collaborative effort aimed at achieving mutual benefits. Unfortunately, this ideal has been compromised. The lack of principled leadership within these unions has led to a situation where they are swayed by political and business interests rather than the needs of the people they represent.
The Role of Intellectual Arms in Unions
Every union should have an intellectual arm that regularly scrutinizes government policies to understand their impact on members and society at large. However, many union leaders are reactive rather than proactive. They wait until laws are passed before taking action, often resulting in unnecessary disruptions to industrial peace. For instance, they could have anticipated the actions of President Bola Tinubu based on his past decisions in Lagos State regarding taxes.
While patriotic citizens like Blakey Ijezie, a Chartered Accountant, were organizing pro bono seminars on upcoming tax laws, the labor leaders remained inactive. Ijezie warned during his seminar in November 2023: “We should really open our eyes and focus on this audacious fiscal policy and tax reforms programme of President Bola Tinubu. If we ignore making our inputs to the working, when he starts implementing the recommendations… we will definitely start another round of lamentations.” Despite this warning, no labor union took notice, and now the situation has reached a critical point.
The Complexity of New Tax Laws
The new tax laws have introduced a complex set of requirements that may be difficult for many businesses to navigate. For example, withholding taxes require companies to deduct taxes from suppliers and service providers at the source. Small businesses, such as mechanics and welders, may struggle with this requirement, as they often lack proper bookkeeping records. Some suggest that these businesses should register with banks, but this adds another layer of complexity.
Additionally, businesses are being asked to provide evidence of maintenance from small businesses that do not have tax records. This creates a challenging environment for many entrepreneurs who are already struggling to make ends meet.
The Need for Equitable Taxation
Taxation should be a two-way relationship between the government and the people. If the government is fulfilling its responsibilities by providing infrastructure and services that support economic growth, there would be less resistance to taxation. However, the current situation shows that the government has not adequately addressed the needs of its citizens.
With the implementation of the new tax laws in January 2026, the government faces a significant challenge in ensuring that these laws do not cause further hardship for the people. It is essential for the government to handle the implementation carefully to avoid plunging the population into deeper anguish.
Conclusion
The current mood of the people is one of concern and uncertainty. While the government continues to collect revenue, the benefits are not being felt by the average citizen. It is crucial for the government to review and reform the tax laws in a way that ensures equity, justice, and fairness for all. Only then can the people begin to enjoy the fruits of their hard work and the renewed hope that has been promised.
