February 4, 2026 l By Dalena Reporters
ABUJA / LAGOS, Nigeria — Widespread discontent is sweeping across Nigeria as workers reel from the effects of newly implemented tax laws that many say have sharply reduced their take-home pay at a time of soaring inflation and rising living costs. The backlash has come from multiple sectors, with protests and anguished voices emerging from offices, factories, and ministries across the country.
The new tax regime which came into effect on January 1, 2026 was meant to harmonise Nigeria’s tax system, simplify compliance, and stimulate long-term economic growth. However, many workers have complained that higher deductions and unfamiliar levies have left them with significantly less disposable income, aggravating the hardships they already face.
Salaried employees receiving January pay slips reported dramatic reductions in net earnings, sparking fears that families already struggling to afford food, transportation and housing will sink deeper into financial distress. With inflation outpacing wage growth, the combined impact of rising costs and higher tax take-aways has fueled anxiety among workers who rely almost entirely on wages to support their households.
Labour leaders have been among the most vocal critics, branding the tax laws as “economic warfare on Nigerian workers” and denouncing the process that produced them. They argue that workers the bulk of consistent taxpayers were excluded from key consultations before passage and implementation, leaving a sense of frustration and betrayal.
According to organised labour representatives, President Bola Tinubu’s administration failed to engage meaningfully with employee groups and unions during deliberations over the tax bills. At public hearings held before the National Assembly, labour unions reportedly warned that heavier tax burdens on already squeezed workers would worsen poverty and inequality a prediction that now appears to be materialising.
Nigeria’s Nigeria Labour Congress (NLC) has condemned the situation, saying the laws unfairly target low-income earners and foreclose the social safety nets that could alleviate the pain of economic adjustments. One senior union official warned that shrinking incomes will hinder productivity, reduce business performance, and increase social strain unless urgent policy changes are made.
The controversy surrounding the tax laws predates their implementation. Opponents had questioned both the content of the legislation and the process by which it was adopted, including allegations of altered text and lack of transparency, and calls for suspension of the rollout were aired late last year.
Government defenders of the reforms have maintained that the changes were designed to rationalise the tax system and ultimately provide greater fairness and efficiency. Some official statements have even suggested that certain deductions like Pay As You Earn (PAYE) have been reduced for many workers under the new framework. However, these assessments have done little to quell the public’s anger, particularly among those who have already experienced significant drops in net pay.
As protests and grumbling escalate, labour groups have hinted at the possibility of mass marches or worker mobilisation if calls for review and greater stakeholder engagement remain unheeded. For now, ordinary Nigerians continue to grapple with the real-time effects of the tax laws in a fragile economic environment, underscoring the challenges governments face in balancing reform with social stability.