With just four days to the scheduled commencement of Nigeria’s sweeping tax reforms, tensions are mounting as organised labour, small businesses and employers’ groups warn of resistance, while manufacturers have declared support for the new laws.
The Nigeria Labour Congress (NLC) has threatened a nationwide revolt over the planned January 1, 2026 implementation of the tax reform package, accusing the Federal Government of sidelining workers and failing to provide clarity on the content and impact of the laws.
Labour leaders say the union was neither consulted during the drafting of the legislation nor adequately briefed after the bills were passed by the National Assembly and signed into law by President Bola Tinubu.
The warning comes as manufacturers welcome the reforms, describing them as business-friendly, while small and medium-scale enterprises (SMEs) and private sector employers call for an immediate suspension of implementation over poor awareness and weak stakeholder engagement.
The controversial tax reforms became law on June 26, following presidential assent to four major bills — the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act and the Joint Revenue Board (Establishment) Act — which together represent the most comprehensive overhaul of Nigeria’s tax system in decades.
The laws consolidate tax administration under a single authority, the Nigeria Revenue Service, with the government arguing that the reforms will reduce the tax burden on workers and small businesses while broadening the tax base.
However, the reforms have remained under intense scrutiny, especially after a lawmaker, Abdussamad Dasuki (PDP, Sokoto), alleged last week that discrepancies existed between the versions of the tax bills passed by lawmakers and the gazetted copies released to the public — a claim that has further heightened suspicion among labour unions and business groups.
Labour Rejects Laws, Warns of Revolt
Speaking on behalf of organised labour, NLC spokesperson Benson Upah said the union had rejected the laws outright, insisting that workers — Nigeria’s largest tax-paying group — had been kept in the dark.
“At the level of the congress, we do not even know what these laws contain, yet we are the largest tax-paying community in the country,” Upah said.
“There has been no sensitisation or public enlightenment directed at the NLC or the labour community. This is an affront and a clear disrespect to citizens. The right to know is not a privilege; it is a right.”
Upah said labour would not accept the implementation of reforms whose details remain unclear, particularly reports suggesting the introduction of tax agents for enforcement.
“These processes are opaque and unacceptable. If tax collection and utilisation are not transparent, the people will revolt — and the NLC will revolt,” he warned.
He also criticised the exclusion of labour representatives from the tax reform committee, despite repeated demands for inclusion.
“How can anybody shave our head in our absence?” he asked. “Nobody deemed it fit to invite us for input or enlightenment. This is a big snub.”
A senior NLC official, who spoke anonymously, said organised labour was now calling for the outright scrapping of the laws, warning that workers would resist any policy that worsens the already harsh economic conditions facing Nigerians.
Manufacturers Back Reforms, SMEs Seek Pause
In contrast, the Manufacturers Association of Nigeria (MAN) has expressed support for the reforms, describing them as beneficial and capable of improving the business environment.
However, SME operators remain unconvinced. The Association of Small Business Owners of Nigeria and the Employers Association for Private Employment Agencies of Nigeria have both called for a suspension of implementation, citing inadequate public awareness and insufficient stakeholder engagement.
The groups warn that rolling out the reforms without proper education could overwhelm small businesses and disrupt economic activity.
Government Defends January 1 Deadline
Defending the reforms, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, warned that delaying implementation could worsen economic conditions.
According to Oyedele, postponement would mean retaining the current tax regime, which he said overtaxes workers and small businesses while driving up the prices of essentials such as food, healthcare and education.
As the January 1 deadline approaches, the growing rift between labour, businesses and the government sets the stage for a major confrontation over Nigeria’s tax future.