The Socialist Party of Nigeria (SPN) has rejected the tax reform laws introduced by the Federal Government under President Bola Ahmed Tinubu, describing the policy as an agenda designed to increase revenue for what it termed the opulent lifestyle of the political class rather than improve the living conditions of ordinary Nigerians.
The party said the tax reforms, which reportedly took effect from January 1, 2026, would worsen poverty, inequality, and economic hardship for workers, retirees, and low-income earners across the country.
In a statement signed by the Acting National Chairperson of the SPN, Comrade Bamigboye Abiodun (Abbey Trotsky), and the National Secretary, Chinedu Bosah, the party dismissed the Federal Government’s claim that the reforms were intended to boost revenue for investments in education, healthcare, infrastructure, and poverty reduction, arguing that similar assurances accompanied the removal of fuel subsidy, which it said had instead plunged millions of Nigerians into deeper hardship.
According to the party, recent assessments linked to the World Bank indicate that over 60 percent of Nigerians more than 130 million people now live in poverty, representing a sharp increase compared to pre-2023 figures.
It added that multidimensional poverty indicators reveal widespread deprivation in access to healthcare, education, decent housing, clean water, and electricity, particularly in rural communities where poverty levels reportedly exceed 70 percent, despite official claims of modest GDP growth of about three percent in recent years.
The SPN argued that imposing additional tax burdens on workers and the poor under prevailing economic conditions is morally and politically unjustifiable, noting that basic amenities such as stable electricity, potable water, good roads, affordable healthcare, quality public education, and security remain grossly inadequate or completely absent in many parts of the country.
The party said most Nigerians are compelled to privately provide essential services through generators, boreholes, vigilante arrangements, and community self-help projects, adding that subjecting such citizens to increased taxation amounts to multiple taxation and punishment for government failure.
The SPN also criticised the government’s decision to raise the annual tax-exempt income threshold from ₦300,000 to ₦800,000, describing the measure as inadequate given the current cost of living. It argued that anyone earning below ₦200,000 monthly should be exempt from income tax, citing high inflation, rising food prices, transport costs, rent, and education and healthcare expenses.
The party disputed claims by government officials that up to 97 or 98 percent of workers would be exempt from income tax under the new regime, stating that inflation and hidden deductions continue to erode workers’ earnings, while many low-income earners are forced to engage in additional economic activities that would still attract taxation.
On the impact of the reforms on businesses, the SPN said Nigeria’s capitalist economic structure ensures that additional taxes imposed on corporations are eventually transferred to consumers through higher prices, wage suppression, job losses, or casualisation of labour, thereby placing the burden on the working class and the poor.
While reiterating its support for heavier taxation of the wealthy and large corporations, the party called for price control measures, improved wages, and an end to anti-labour practices.
It also advocated the nationalisation and democratic management of the commanding heights of the economy to ensure that national wealth benefits the majority of Nigerians.
The SPN noted that despite government assurances that essential goods such as food and healthcare remain exempt from Value Added Tax (VAT), inflation particularly food inflation remains high, driven by fuel price increases, currency depreciation, transport costs, and market speculation, which it said continue to raise prices even on VAT-exempt items.
The party further alleged class bias within provisions of the tax laws, citing sections that exempt certain companies in the power sector from VAT while electricity consumers continue to pay VAT on electricity bills.
It also pointed to tax holidays of between 12 and 20 years allegedly granted to some large companies, while ordinary Nigerians remain subject to taxation.
Expressing doubts that increased tax revenue would translate into improved public services, the SPN cited rising debt servicing costs, inadequate funding for education and healthcare, deteriorating public institutions, and persistent insecurity across the country.
Describing the tax reform as a political instrument rather than a neutral economic policy, the party called on the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and civil society organisations to form a broad Labour and Civil Society Coalition to resist the policy through mass action.
The party also urged labour and civil society groups to work towards building a mass-based working people’s political alternative on a socialist programme ahead of the 2027 general elections and beyond.
