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Tax reform will boost workers’ welfare – Fed Govt

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The proposed Tax Reform Bills will significantly improve the quality of life for workers, the Federal Government has reaffirmed.

In response to misgivings expressed by the Nigeria Labour Congress (NLC) Joe Ajaero, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele outlined key measures embedded in the bills.

He said lowly-paid workers earning around N1 million annually (approximately N83,000 monthly), would enjoy full exemption from the Pay As You Earn (PAYE) tax. This policy would cover nearly one-third of workers in both the public and private sectors.

For middle-income earners, the bills propose reduced PAYE tax rates for those earning up to N20 million annually (about N1.7 million per month), benefiting an additional 60 percent of Nigerian workers.

Members of the armed forces actively engaged in combating insecurity will also receive PAYE tax exemptions alongside other ranks.

To mitigate the rising cost of living, the bills propose eliminating Value Added Tax (VAT) on essential goods and services, including food, healthcare, and education, which account for approximately 60 percent of all household consumption.

Other items such as transportation, renewable energy, compressed natural gas (CNG), baby products, sanitary towels, and fuel products, representing over 20 percent of household consumption, are also exempted.

Oyedele explained that these measures would address nearly 82 percent of household expenses and up to 100 percent for low-income earners.

The tax reform bills include provisions to incentivize better compensation for workers. These include tax breaks for wage awards and transport subsidies targeting low-income earners.

Furthermore, the bills aim to simplify processes by removing bureaucratic restrictions on wage awards and introducing caps on taxable benefits granted to workers.

Oyedele explained that the reforms propose VAT exemptions on rent and property acquisition to promote affordable housing. Stamp duties on rents below N10 million would also be waived to alleviate housing-related financial burdens.

The tax reforms also prioritize employment creation through various incentives. These include tax benefits for employers hiring more workers, tax-friendly rules to attract remote work opportunities for Nigerians, and tax exemptions for 97 percent of Small and Medium Enterprises (SMEs).

The harmonization and reduction of tax rates for large businesses are expected to stimulate growth, creating more job opportunities.

Acknowledging that the tax bills could be refined further, Oyedele noted the importance of robust debates and stakeholder engagements during the legislative process.

“The bills in their current form are the most pro-workers tax reforms in Nigerian history,” he stated, urging the NLC to collaborate in identifying areas for improvement.

“We believe the NLC will not intentionally work against the interest of its members. We look forward to discussing specific areas to better serve the interest of all Nigerians, including workers,” Oyedele added.

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UPDATE: Dangote Refinery Cuts Fuel Prices, Updates Petrol Supply

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Dangote Refinery has announced a nationwide petrol price cut, ahead of the launch of its direct fuel distribution initiative now set for Monday, September 15, 2025.

Originally scheduled for August 15, the initiative will see the $20 billion, 650,000 bpd refinery deliver petrol and diesel directly to consumers using 4,000 CNG trucks, with zero logistics cost.

Despite an ongoing dispute with NUPENG, Dangote Group released a fresh price template on its X account, confirming its gantry price remains N820 per litre.

Retail prices have dropped to N841 per litre in Lagos and the South-West (from N860), and N851 per litre in Abuja, South-South, and North Central states (from N885)—a reduction of N19 to N34 per litre, depending on the location.

The new prices apply only to MRS and Dangote’s official distribution partners, as independent marketers are not bound by the template.

Meanwhile, NUPENG has threatened a fresh strike, accusing Dangote of reneging on earlier agreements—a claim the company denies, affirming workers’ right to union membership.

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Dangote Refinery Mgt Says Workers Union Membership is Personal Choices

It urged NUPENG to focus on resolving its internal dispute with the Petrol Tanker Drivers unit rather than “embroiling the refinery in its conflicts.

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Dangote Petroleum Refinery has said membership of trade unions by its employees remains voluntary and not compulsory, in line with the Nigerian Constitution and International Labour Organisation conventions.

In a statement made available to Ohibaba.com, the company accused what it described as “distortions of facts” by the Nigeria Union of Petroleum and Natural Gas Workers concerning its trade relations with workers.

The refinery stressed that it does not interfere with or restrict employees’ right to freely join legally recognised unions.

“It is therefore misplaced to attribute responsibility to Dangote Petroleum Refinery for the personal choices made by drivers regarding union affiliation,” the company stated.

Dangote dismissed allegations that it forced drivers to sign contracts barring union membership, describing the claim as unfounded.

It urged NUPENG to focus on resolving its internal dispute with the Petrol Tanker Drivers unit rather than “embroiling the refinery in its conflicts.

”The company added that accusations of union suppression formed part of a broader attempt to undermine private sector progress.

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NUPENG Dangote Union Memberships Agreement Collapses: What Happened Again?

Akporeha alleged that within 48 hours, Dantata ordered drivers to strip NUPENG stickers from their vehicles and forcefully enter the refinery in violation of union loading procedures.

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The agreement between the Nigerian Union of Petroleum and Natural Gas Workers and the Dangote Petroleum Refinery has collapsed, and here’s why.

The confrontation follows allegations by NUPENG that the Dangote Group reneged on a Memorandum of Understanding signed earlier this week, under which the refinery agreed to allow tanker drivers and other workers to freely unionise.

On Thursday, NUPENG’s National President, Williams Akporeha, accused Sayyu Aliu Dantata, a cousin of Aliko Dangote and key player in the refinery’s trucking operations, of defying the resolution reached on September 9 at the Department of State Services headquarters in Abuja.

The meeting, mediated by the Minister of Labour and Employment, Muhammadu Dingyadi, affirmed the rights of Petroleum Tanker Drivers under NUPENG to unionise. Representatives of the Nigeria Labour Congress, Trade Union Congress, DSS, and other agencies witnessed the signing of the MoU.

But Akporeha alleged that within 48 hours, Dantata ordered drivers to strip NUPENG stickers from their vehicles and forcefully enter the refinery in violation of union loading procedures.

“Alhaji Sayyu Aliu Dantata flew over them several times with his helicopter and then called the navy of the Federal Republic to come over ostensibly to crush the union officials. Our members are waiting for him and his agents to run them over,” Akporeha said in a statement.

The union condemned what it described as Dantata’s “impunity” and warned the Federal Government not to allow security agencies funded by taxpayers to be used against workers.

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