Kwara State Governor Abdulrahman Abdulrazaq has approved a financial bonus equal to the monthly PAYE (Pay-As-You-Earn) tax obligation for every state and local government employee. This sweeping relief, announced Monday, is set to provide a three-month buffer, effective October through December, to alleviate the financial strain on workers affected by recent tax adjustments.
According to the state’s Commissioner for Finance, Dr. Hauwa Nuru, the bonus is an "emergency support measure" meant to ease the transition to a newly enforced tax regime that aligns with Nigeria's Personal Income Tax Act. “This bonus has been approved as a buffer to bridge the gap that the correct PAYE deduction may have wrought on the newly implemented minimum wage,” she stated. “It is meant to serve as a soothing balm as workers adjust to the PAYE that was just correctly implemented.”
This intervention comes on the heels of a strong protest from Kwara’s organized labour unions, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), who voiced outrage over increased taxes on the newly implemented N70,000 minimum wage. Labour leaders, including NLC Chairman Comrade Muritala Olayinka and TUC Chairman Comrade Olayinka Onikijipa, called the tax hike excessive, warning it could trigger “industrial disharmony” if the government does not reverse it.
The unions argued that the minimum wage implementation diverged from agreements made with workers. They further demanded that pensioners in the state also receive the new minimum wage to address what they termed a “gross neglect” of retirees’ welfare.
In a bold step to ease tensions, Governor AbdulRazaq’s administration pledged to refund a special levy recently deducted from workers’ salaries and to suspend any further deductions for the time being. Meanwhile, the Finance Commissioner urged state employees who have not registered with the Kwara State Residents’ Registration Agency to do so immediately to qualify for the November and December bonuses.
“Governor AbdulRazaq’s directive to deliver this relief speaks volumes about his humanity and his commitment to the welfare of the Kwara workforce,” Dr. Nuru affirmed, underscoring the Governor’s dedication to stabilizing the workforce amidst turbulent financial conditions.
This PAYE bonus stands as an unprecedented move in the state’s recent history and reflects the Governor's determined approach to safeguard the welfare of Kwara's workforce.
