By Michael Oche
The Trade Union Congress of Nigeria (TUC) has called on the Federal Government to implement a 50 per cent reduction in taxes on manufacturers and workers, warning that the current tax burden is worsening economic hardship and undermining productivity across key sectors.
The demand formed part of resolutions reached at the Congress’ National Executive Council (NEC) meeting held in Abuja on Monday, where labour leaders reviewed the state of the economy and its impact on Nigerian workers and businesses.
In a communiqué jointly signed by its President-General, Comrade Festus Osifo and Secretary General, Comrade General Nuhu Toro, the Congress said rising inflation, high energy costs, exchange rate pressures and multiple taxation have combined to create a hostile operating environment for manufacturers, while significantly eroding workers’ purchasing power.
According to the Congress, cutting taxes by half would provide immediate relief, stimulate production, and help businesses stay afloat amid mounting economic challenges.
The communiqué reads, “NEC reviewed the persistent hardship arising from rising fuel prices and reaffirmed that urgent government intervention is required to prevent further increases in the pump price of petroleum products.”
“Council noted that the combined effects of global crude oil volatility, exchange rate pressures, and domestic supply constraints continue to drive up the cost of petrol, diesel, and aviation fuel, thereby worsening transportation costs, food prices, production expenses, and overall living conditions.
“NEC therefore calls on the Federal Government to allocate part of excess crude revenue—earned above the budget benchmark—to subsidise crude oil supplied to domestic refineries, including the Dangote Refinery and other local refineries.
“This approach represents a transparent, production-linked intervention that can lower the cost of refined products without reverting to the discredited subsidy regime. NEC also demands a 50% reduction in taxes on manufacturing companies and workers within this period to ease economic pressure and support productivity.”
The NEC also said it received, with cautious optimism, the recent approval of welfare measures for federal civil servants, including the N10 billion housing loan scheme aimed at improving access to home ownership.
The Congress said while it welcomes this initiative, the policy announcements must translate into tangible benefits, noting that the scheme must be accessible, affordable, transparent, and free from bureaucratic bottlenecks.
“TUC calls on the Federal Government to ensure that the scheme is not hijacked by privileged interests. State governments are equally urged to replicate similar interventions and extend such benefits to local government workers, private sector employees, and retirees who continue to face severe economic hardship,” the communiqué stated.
On electricity, the Congress decried continued tariff increases without commensurate improvement in power supply, insisting that Nigerians “must not be forced to pay for inefficiency.” It called for universal metering, an end to estimated billing, and greater accountability from distribution companies and regulators.
The communiqué reads further, “NEC expressed grave concern over the escalating insecurity across the country, including kidnappings, banditry, terrorism, communal clashes, farm invasions, highway abductions, and other forms of violent criminality.”
“Council observed that insecurity has evolved into a major economic and labour crisis. When farmers are unable to access their farms, food production declines and prices rise. When workers cannot travel safely, productivity suffers. When communities are displaced, businesses collapse and jobs are lost.
“NEC calls on all tiers of government and security agencies to adopt a coordinated, intelligence-driven, and community-based security framework.”
