Wabba urges Unions to oppose VAT hike
…warns of economic strain on workers
By Ukpono Ukpong
The Former President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, has called on labour unions to resist the federal government’s proposed annual Value Added Tax (VAT) increase.
Wabba described the plan as a significant threat to workers’ welfare, warning that it would worsen the economic challenges faced by Nigerians.
Speaking at the inauguration of the newly elected State Council Chairmen of the Medical and Health Workers Union of Nigeria (MHWUN) in Abuja on Wednesday, Wabba criticized the proposal to incrementally raise VAT from 7.5% to 15%.
He argued that such a policy would drive up the cost of goods and services, deepening the financial burden on ordinary citizens.
Highlighting the approach of other countries like Ghana, which have reduced VAT to ease the cost of living, Wabba condemned Nigeria’s policy direction as “regressive.”
He cautioned that the increase would diminish workers’ purchasing power and render the current minimum wage insufficient to meet basic needs.
Wabba urged unions to challenge this policy and ensure that workers’ voices are heard in the ongoing discussions. He also advocated for a fairer tax system, suggesting that the wealthy should bear a larger share of the tax burden while providing subsidies for the poor. “We must tax the rich and subsidize the poor,” he said.
The labour leader also turned his attention to the newly elected MHWUN state chairmen, congratulating them on their victory and charging them with upholding the legacy of integrity and progressive trade unionism. He noted that the union’s strength lies in its commitment to accountability and transparency, urging the new leaders to avoid corruption and ensure that union funds are used responsibly.
He highlighted the critical role of integrity in union leadership, stating that those who misuse union resources will not be tolerated. “And so therefore, none of you should be found wanting. You must make sure that you are able to represent our members in your various states effectively. And also try to make sure that you are able to reflect the good image of the union,” he stated.
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On his part, Comrade Kabiru Ado Sani, the National President of MHWUN, outlined the vision for his administration, noting that accountability, transparency, and discipline are key pillars of the union’s operations.
Sani congratulated the new chairmen, recognizing that many were stepping into leadership for the first time, he urged them to familiarize themselves with the union’s constitution, policies, and the public service rules in order to better serve their members.
He also deminded of the union’s commitment to building a prosperous and progressive MHWUN, one that future generations of workers would be proud to belong to.
“As you are aware, my predecessors had sacrificed a lot to bring this union to the top and it is our responsibility to guard this jealously and sustain that enviable
height. The current administration would deal decisively with any Chairman that may try to pull the Union down or tarnish the hard-earned image of the Union,” he warned.
