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The Mirage of Minimum Wage in Nigeria

The Nigeria’s 9% Communication Tax

The value added tax (VAT) redesign is on life support. But quickly, the Nigerian government  realized that all of us talk a lot. Now, the battle shifts to 9% Communication Tax. 

“I will put it this way, Nigerians talk a lot on the phone; they even talk more than is required, so for them to capacity or revenue to talk that much, I don’t see any harm in paying a little bit more to government.” B. Fowler, boss of FIRS.

I expect the 9% communication tax bill to pass because it is coming from the National Assembly, unlike the 2.5% VAT makeover. But you know what? If Nigerian Labour Congress drops the minimum wage battle, the extra taxes will disappear. Hope you see the paralysis in Nigeria: before the min wages are even paid, government is already taking the money from workers!

Yes, an African proverb notes that a bird that is perching on the anthill is still on the ground! Nigeria needs growth - we are just engineering noise with all these policies. Add money on min wage, take money via taxes on what everyone does - talking!