TUC Urges FG to Implement 50% Tax Relief for Workers Amid Economic Hardship

The Trade Union Congress of Nigeria (TUC) has urged the Federal Government to introduce a 50% tax relief for employees and manufacturing businesses as a critical step to mitigate the current economic difficulties. This proposition was among the key resolutions adopted during the union's National Executive Council (NEC) meeting held in Abuja.

Leaders of the TUC expressed significant worry regarding the consequences of ongoing international conflicts on Nigeria's economic stability. They highlighted that the resulting surge in global crude oil prices has directly led to increased fuel costs, higher transportation charges, and a general rise in the prices of goods and services, severely impacting the living standards of Nigerian workers.

In a briefing to journalists following the meeting, TUC president, Festus Osifo, pointed out that despite Nigeria's position as an oil-producing nation, the benefits of elevated crude oil prices have not reached the populace. He lamented that workers are currently contending with imported inflation, the depreciation of the Naira, and escalating living expenses.

Osifo emphasized that prompt fiscal interventions, including a 50% tax cut for both workers and manufacturers, are essential to alleviate the financial strain on households and to foster productivity within the nation's industrial sector.

He further cautioned that without swift governmental action, the combined pressures of high operational costs and diminishing consumer spending power could precipitate widespread job losses and business closures across vital economic sectors.

Beyond tax relief, the TUC advocated for the utilization of surplus crude oil revenue to stabilize the economy, support domestic oil refining operations, and shield vulnerable citizens from the adverse effects of global economic fluctuations.

The union leader also stressed the importance of treating the international crisis as both a foreign policy and a domestic economic emergency, demanding a coordinated and transparent approach to policy formulation.

Regarding the energy sector, the TUC strongly condemned the continuous upward revision of electricity tariffs, arguing that there has been no commensurate improvement in service quality. The union criticized the ongoing practice of estimated billing, calling for the universal installation of meters, transparency in electricity pricing, and meaningful consultation with labour unions before any further tariff adjustments.

Furthermore, the Congress voiced grave concerns over the escalating insecurity across the nation, characterizing it as a dual national and economic crisis. The union linked the proliferation of banditry, kidnapping, and farm invasions to reduced agricultural output, unemployment, and increased poverty levels.

The TUC called for the implementation of a unified, intelligence-led security strategy aimed at safeguarding farms, transportation routes, workplaces, and rural communities.

"The National Executive Council reviewed the persistent hardship stemming from escalating fuel prices and reiterated the urgent need for government intervention to halt further increases in the price of petroleum products at the pump.

"The Council observed that the confluence of volatile global crude oil prices, currency exchange rate pressures, and domestic supply challenges continues to drive up the costs of petrol, diesel, and aviation fuel, thereby escalating transportation expenses, food prices, production costs, and overall living conditions.

"Consequently, the NEC urges the Federal Government to allocate a portion of the excess crude revenue, exceeding the budgetary benchmark, to subsidize crude oil supplied to domestic refineries, including the Dangote Refinery and other local facilities.

"This strategy represents a transparent, production-focused intervention capable of reducing the cost of refined products without reinstating the widely criticized subsidy regime.

"The NEC also demands a 50 percent reduction in taxes applicable to manufacturing companies and their employees during this period to ease economic burdens and promote productivity.

"The NEC calls upon all levels of government to prioritize the well-being, dignity, and security of Nigerian workers in all their policy decisions."

The Congress concluded by stating its readiness to mobilize workers should policies continue to exacerbate hardship or infringe upon the rights and welfare of the working populace.