Ex-NLC president urges labour unions to oppose proposed annual VAT hike

Former President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, has called on labour unions to oppose the government’s proposed annual increase in Value Added Tax (VAT), warning that it will have severe consequences for the working class.

Wabba, 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, described the proposal as detrimental to workers’ welfare and the economy at large.

The former MHWUN national president condemned the government’s plan to gradually increase VAT from 7.5% to 15%, arguing that this would lead to higher costs of goods and services, and increase the economic burden on ordinary Nigerians.

He pointed out that while many countries, including Ghana, were reducing VAT to ease the cost of living, Nigeria is moving in the opposite direction, which he termed “regressive.” He cautioned that such an increase would erode the purchasing power of workers and affect wages, including the minimum wage, which would be insufficient to cover the rising costs of essential goods.

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 subsidise 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, 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.

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 and 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 demanded 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.

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