Adamawa State Workers Face N40,000 Tax Deductions Following Minimum Wage Increase to N70,000; NLC Condemns Policy

In Adamawa State, what should have been a positive development for civil servants has sparked controversy. Following Governor Ahmadu Umaru Fintiri’s recent increase of the minimum wage to N70,000, workers received an unwelcome surprise in their October paychecks: new tax deductions reaching up to N40,000. The Nigerian Labour Congress (NLC) has criticized the new tax policy, arguing that it negates the intended benefits of the wage increase and leaves many workers worse off financially.

At a press briefing in Yola, NLC Deputy President Audu Titus Amba, who is also the National President of the Nigerian Union of Teachers (NUT), voiced frustration over the tax hikes. “This wage increase was meant to relieve workers, but with these significant tax deductions, it feels as if the government is giving with one hand and taking with the other,” he said. According to Amba, the new deductions vary across the workforce, with some employees facing cuts as high as N40,000 and others around N12,000.

The unexpected tax burden has sparked concerns among workers who had hoped the minimum wage boost would ease the impact of rising living costs. The NLC argues that the deductions reduce the net benefit of the N70,000 wage increase, ultimately creating more financial strain for civil servants.

In addition to the tax issue, Amba pointed out that some key sectors, notably local government and primary school teachers, have not yet received the wage increase despite its announcement over two months ago. He called on the state government to address the exclusion of these educators, emphasizing that teachers at the primary level are essential service providers who deserve fair compensation.

“While other sectors have seen their wages increased, our teachers in local government and primary schools remain without the benefit,” Amba said. “This gap creates an unfair burden on those providing foundational education to our children.”

Amba, who was in Yola to oversee the NUT state elections, where Faisal Abubakar Mohammed was elected as the new state chairman, urged Governor Fintiri to immediately review the tax structure to alleviate the financial burden on workers. The NLC has pledged to continue advocating for fair policies that ensure workers receive the full benefit of wage adjustments without facing debilitating tax deductions.

As the labor union continues to monitor the situation, it has vowed to pursue further action if the tax policy is not adjusted to reflect the interests of Adamawa State workers.