The Trade Union Congress of Nigeria (TUC) has rejected a circular issued by the Federal Ministry of Health and Social Welfare directing the implementation of a “No Work, No Pay” policy and the stoppage of salaries of members of the Joint Health Sector Unions through the Integrated Payroll and Personnel Information System from January 2026.

The circular, signed by the Director of Hospital Services in the ministry, Dr Abisola Adegoke, ordered the enforcement of the policy in response to the ongoing JOHESU strike, which began on November 15, 2025.

In a statement issued on Wednesday and jointly signed by its President, Festus Osifo, and Secretary General, N. A. Toro, the TUC described the directive as unacceptable, provocative and a violation of established industrial relations principles.

The congress said the ministry’s action undermined ongoing negotiations between the Federal Government and health sector unions, accusing it of resorting to intimidation instead of dialogue.

“The Trade Union Congress of Nigeria unequivocally, vehemently and totally rejects the circular issued by the Federal Ministry of Health and Social Welfare on the so-called implementation of ‘No Work, No Pay’ and the stoppage of salaries of JOHESU members through IPPIS, effective January 2026,” the statement read.

According to the TUC, the decision amounted to a gross abuse of power and a deliberate attempt to sabotage negotiations.

“Congress states in the clearest terms that this action is a gross abuse of power, a deliberate sabotage of ongoing negotiations, and a flagrant violation of established industrial relations principles. It represents a return to command-and-control labour administration, which has no place in a democratic society,” the union said.

The congress warned that the stoppage of salaries would worsen the hardship already faced by health workers amid rising inflation, fuel price increases and broader economic challenges.

“You cannot negotiate with workers on one hand and unleash punishment with the other. This circular is not policy; it is intimidation, and Congress will not accept it,” the statement added.

The TUC further condemned what it described as the “weaponisation” of IPPIS to punish workers, vowing to resist any attempt to force health workers back to work through salary stoppages.

“The stoppage of salaries of JOHESU members—workers who save lives daily—is wicked, insensitive, provocative and profoundly unpatriotic, especially at a time when Nigerian workers are being crushed by inflation and harsh economic policies,” it said.

The congress demanded the immediate and unconditional withdrawal of the circular, restoration of all affected salaries and a return to negotiations within seven days.

It warned that failure to reverse the decision within the stipulated period would compel the TUC to mobilise workers across sectors for decisive collective action.

“The Federal Ministry of Health and Social Welfare must immediately withdraw this circular, restore all affected salaries and return to the negotiation table within seven days. Failure to do so will force Congress to mobilise Nigerian workers nationwide,” the statement said.

The TUC also placed its affiliates, state councils and the Federal Capital Territory council on alert, directing them to remain on standby for further instructions.

It warned that any industrial unrest arising from the situation would rest squarely on the leadership of the health ministry, accusing it of choosing confrontation over dialogue.

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The Federal Government has directed all banks and fintechs to collect and remit 7.5 per cent value-added tax VAT on certain electronic banking services, effective Monday, January 19, 2026, according to an email notice issued by payment platforms.

The VAT will apply to electronic banking charges, including mobile money transfers, USSD transaction fees, and card issuance fees, according to an email notice on Wednesday shared with customers by Moniepoint.

For example, if a bank charges N100 to make a transfer, the 7.5 per cent VAT will be applied to that service fee, not the money being sent.

“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (formerly known as the Federal Inland Revenue Service).

“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees,” the email read.

Other operators are expected to issue similar notices to their customers in the coming days. Services that will remain exempt include interest earned on deposits and savings, meaning customers will not pay tax on the returns from their accounts.

The NRS, formerly known as the Federal Inland Revenue Service, has set the deadline to ensure that all commercial banks, microfinance banks, and electronic money operators comply with the collection and remittance requirement.

Moniepoint stressed that this is not a price increase but a statutory obligation. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said in a statement.

The move is part of the government’s broader efforts to standardise VAT collection on digital financial services and expand revenue generation amid Nigeria’s growing digital economy. VAT on banking transactions is not entirely new; the NRS is now enforcing uniform collection rules across all platforms, ensuring compliance across the sector.

Customers have been assured that the new tax will be clearly itemised, with the VAT shown separately on transaction statements and reports.

In December, several commercial banks informed customers that the N50 stamp duty would be deducted on electronic transfers of N10,000 and above, following the commencement of provisions of the new Tax Act.

The charge, previously known as the EMTL, has now been formally reclassified as stamp duty and will be applied as a one-off fee on qualifying electronic transfers.

As Nigeria embraces its new tax reform in 2026, the Federal Government has been advised that poor Nigerians should be given tax reprieve because they have a low per capita income.

This advice came from an Abia politician and a US-trained Medical Doctor, Chief Dr. John K. Nwadinobi, at his country home in Amaogwugwu in the Umuahia North LGA.

He said, “When it comes to the issue of taxation, even though initially Nigerians were under-taxed, this was because the federal taxation applied to only federal civil servants.

“But the best thing to do is to spread the taxation scheme so that everybody pays a token, like Pay As You Earn (PAYE). Then, if you don’t earn, in other countries, the federal government reimburses people with low income or no income, a certain amount. But anybody who is productive has to pay something”.

Nwadinobi argued that the process through which the tax reform came into being should have been more thorough.

He said, “Excessive taxation on industrialists can make them withdraw job provisions. These people have already provided jobs, and are they being taxed because they establish a business that provides jobs to Nigerians? Something that the Federal Government could not do.”

He noted that in Nigeria, more than 200 bank branches have been earmarked for closure due to recapitalization demand.

He said, “Why do we need to shut down banks? If you shut down a bank, you have laid down workers across the nation. It will affect the economy of the workers and their children and their wives. It will affect the economy of the people that transport them to the bank.

“The lady that sells in the restaurant they eat during lunch, the landlord that gives them where to live will be affected. Recapitalization or whatever they call it, is giving a dog a bad name to kill it”.

Nwadinobi noted that viable companies are no longer functional in the country, stating, “I am not in support of shutting down any bank. Capitalize them instead of saying recapitalization, which is giving a dog a bad name to kill it and shut down banks”.

On the issue of Nigeria becoming a one party state, the PDP stakeholder said, “It is the job of every politician to make sure he survives to the next term. Politicians do everything they can to win the same election, and at least complete eight years tenure, like for the President or for the governor. So what APC is doing is not wrong.

“They are making every effort to have people cross carpet to their own party. So it is upon the people, the other political parties, to make sure they cross or they don’t cross. It is a personal decision.

“One-party state will never work in Nigeria. If it is tried, some people will not find favour in that one-party state. They will surely break away. So one-party state will be a political confusion.

Speaking about Abia State Nwadinobi said, “I would not say because I am not in Labour Party, then I am blinded by what is so glaring in other states. Governor Alex Otti is performing. Up from inauguration till date, two years, he has done wonderfully. And that is my submission”.