NLC president warns of economic and democratic risk
The Nigeria Labour Congress (NLC) has issued a stern warning that the combination of heavy taxation, stagnant wages, and escalating national debt poses a severe threat to the nation’s economic and democratic stability.
Speaking on Thursday, January 8, 2026, NLC President Joe Ajaero raised concerns during the 85th birthday celebration and book launch of the congress’s founding president, Hassan Summonu. Ajaero accused the Federal Government of systematically excluding workers and the impoverished from critical policy decisions that directly impact their livelihoods.
The labor leader criticized the government’s approach to fiscal policy, particularly the implementation of new tax laws that took effect on January 1, 2026. He argued that these reforms were crafted without meaningful input from organized labor and described the process as a “dangerous pattern” that undermines trust in governance. According to Ajaero, policies concerning fuel pricing, taxation, and social services should be designed with the active participation of those who represent the masses.
“Today, we honor a titan of the working-class struggle whose life and work are captured in the militant creed: ‘Organise, Don’t Agonise,'” Ajaero stated during the event. He noted that the power of a united people is the only effective counter to the “agony imposed by exploitation and poor governance.” The NLC has called on the Tinubu administration to urgently rethink its current economic path and re-engage with labor unions to find sustainable solutions to the country’s rising debt profile.
National debt and wage disparities spark public outcry
A major point of contention highlighted by the NLC is the transparency regarding Nigeria’s borrowing habits and the allocation of acquired funds. Ajaero echoed a question previously posed by Hassan Summonu, asking, “Where are all the monies being borrowed by the federal government?” The labor union expressed alarm over a system where the “Have-nots” are increasingly burdened by debt repayment while the “Haves” continue to amass wealth at the expense of national development.
Despite the approval of a ₦70,000 minimum wage in 2024, the NLC maintains that it has become grossly inadequate due to hyperinflation and the depreciating value of the Naira. The congress highlighted that the cost of basic food items, such as a bag of rice, now far exceeds the monthly minimum wage, forcing millions into a struggle for “mere survival.” Ajaero vowed that the union would continue to push for an urgent wage review in 2026 to ensure that earnings guarantee a dignified life for all workers.
The labor body also rejected what it termed “mercantilistic politicians” who rely on empty promises while implementing policies that decimate living standards. The NLC warned that if these economic imbalances are not addressed, the resulting social friction could lead to widespread instability across the country. Many observers believe that the first quarter of 2026 could see a significant increase in labor-led protests if the government does not adjust its fiscal trajectory.
Government defends tax reforms as necessary for growth
In response to the mounting criticism, the Federal Government has defended the new tax laws as a “once-in-a-generation opportunity” to build a fair and robust fiscal foundation. The Presidential Committee on Tax Reforms, led by Taiwo Oyedele, has maintained that the reforms are not designed to raise taxes but to harmonize the existing system and stimulate economic growth. The government insists that low-income earners are actually protected by the new exemptions, such as the ₦800,000 annual tax-free threshold.
However, the NLC remains skeptical, arguing that the exclusion of major stakeholders from the committee’s deliberations has resulted in a “regressive” framework that targets the poor. Ajaero emphasized that true democracy is about the rule of law and governance that serves the many, not the few. He urged the government to “stop grandstanding” and address the legitimate concerns of the citizens before the economic pressure leads to a national breaking point.
As the 2026 fiscal year unfolds, the standoff between organized labor and the executive branch is expected to intensify. The NLC has already signaled that its mobilization in the coming months will be “strategic and tactful,” focusing on holding every tier of government accountable. For the average Nigerian worker, the hope remains that a middle ground can be reached that ensures both national economic stability and a fair living wage.
