TUC Demands 50% Tax Cut for Workers and Manufacturers, Warns of Mass Job Losses

The Trade Union Congress of Nigeria is turning up the heat on the Federal Government over taxation. The TUC on April 28, 2026 called on the government to grant a 50% tax reduction for workers and manufacturing companies, warning that failure to act will push the country toward widespread job losses and workers’ unrest.

The demand comes at a time when Nigerian workers and businesses are already absorbing a brutal combination of rising energy costs, elevated food prices, and a weakened naira. For manufacturers in particular, every increase in production costs cuts directly into margins and, eventually, into headcount.

Why Now

The TUC’s call lands against a difficult global backdrop. Iran-related energy shocks have rippled through international oil markets in recent weeks, and Nigeria has not been insulated from the downstream effects on domestic fuel and production costs. The union’s demand extends beyond individual workers to include manufacturing companies — a signal that the TUC is thinking about the entire employment pipeline, not just take-home pay, but whether the factories and workshops that employ Nigerians can remain viable under current tax conditions.

The Stakes

Without meaningful relief, the TUC warned, Nigeria faces a scenario where companies begin shedding jobs to stay afloat, with workers’ unrest following. It is a familiar cycle in Nigerian economic history.

A 50% reduction is a steep ask. The Federal Government has its own fiscal pressures: Nigeria’s budget has been running significant deficits, and tax revenue is one of the key levers the government has relied on to close the gap. The TUC’s demand essentially asks Abuja to choose between short-term revenue collection and long-term employment stability.

The demand arrives as Nigeria continues debating the shape of its tax reform agenda under Finance Minister Taiwo Oyedele, who has promised to streamline the country’s tax structure. Whether the government responds to the TUC’s call will be an early signal of where that reform is actually headed.

Sources: Leadership, Daily Trust, New Telegraph