The public is aware of the current misgivings and misrepresentations over the correct implementation of Pay-As-You-Earn (PAYE) Law by the leadership of the Organised Labour in the State who have gone to the extent of calling out their members on strike and intimidating law abiding workers in their offices.

2.    Although Government had issued previous clarifications on this matter vide a press statement of 29th January, 2010, it has become necessary, once again, in view of the dimension this issue has taken, to give further clarifications.

3.    It must be pointed out that contrary to the assertion that Nasarawa State is introducing a new tax law, the truth is that Government has taken measures to ensure compliance with the provisions of existing Tax Law cited as the (Personal Income Tax Act, CAP P8 LFN 2004) Pay-As-You-Earn Regulations and the guidelines thereto which came into effect in 2004.

4.    The PAYE law makes it mandatory for all private and public sector employers of labour to apply the Tax Law by making appropriate deductions from salaries and allowances of their employees.

5.    Government’s attention to the non-conformity to the law is informed by comments of audited reports of Government Accounts and the legal implications of Tax evasion.

6.    In the same vein, it was observed that non-compliance with this law has resulted in cases of over and under deductions of Personal Earnings of public officers, civil servants and workers in the organised private sector.

7.    Realising the inevitability of implementing the Law in Nasarawa State, several meetings were held between public officers and the leadership of the Organised Labour to sensitize, clarify and discuss the Tax Act. Specifically, the leadership of labour met severally with the Hon. Commissioner of Finance, Head of Civil Service and Sole Administrator of Board of Internal Revenue Service. A procedure for computing the PAYE monthly deduction was also summarised and were widely distributed.

8.    To further strengthen Government’s sensitisation efforts, a Cabinet Committee under the Chairmanship of the Secretary to the State Government was constituted with the Attorney-General, Commissioner of Finance, Head of the Civil Service and Sole Administrator, Board of Internal Revenue, as members, to meet with and offer further clarifications to the leadership of the Organised Labour.

9.    This Cabinet Committee met with the Labour Leaders on Tuesday, 26th January, 2010 where the matter was explained to labour.

10.    Furthermore, the Labour Relations Committee under the Chairmanship of His Excellency, the Deputy Governor invited the leadership of the Organised Labour for a meeting on Wednesday, 27th January, 2010. It should be noted that, regrettably, the leadership of Labour Unions deliberately refused to honour this invitation, and thereafter, cut off all communications with Government.


11.    In spite of these clarifications by Government, it would appear that the leadership of the Organised Labour are determined to frustrate the exercise of a legal and civic responsibility which is incumbent on all bonafide citizens of Nasarawa State and indeed, the Federal Republic of Nigeria.

12.    It needs to be pointed out that in an attempt to disrupt normal processes of paying salaries, the leadership of the Organised Labour orchestrated and attacked officials of the Ministry of Finance, and in particular, the person and office of the Director Inspectorate where they snatched and made away with the already prepared January, 2010 salary vouchers for civil servants in the State.

13.    As if this was not enough, on Monday, 1st February, 2010, the leadership of the Organised Labour invaded Government offices and Establishments; and molested the ever-loyal and law-abiding civil servants of the State.

14.    Government is embarrassed by the unruly acts of these labour leaders who are acting contrary to the provisions of Labour Laws and the interest of civil servants in the State.

15.    It is important to point out that in compliance with the provisions of the Act, all Federal civil servants as well as private sector employers in the State have already commenced compliance and indeed remitted their PAYE deductions to the Nasarawa State Board of Internal Revenue without complaint.

16.    Government wishes to assure the leadership of the Organised Labour and indeed all workers in the State of its readiness to clarify any misconceptions on the regularisation of the Personal Income Tax Act, 2004. In this regard, the State Labour Relations Committee under the Chairmanship of the deputy Governor has once again scheduled a meeting with Labour Leaders for Tuesday, 2nd February, 2010. It is hoped that the leadership of the Organised Labour will take advantage of this opportunity to avail themselves of the facts relating to the regularisation exercise.

17.    In the mean time, Government wishes to call on all law-abiding workers in the State to report to their normal places of duty as all measures have been taken to ensure their safety.

18.    Once again Govt calls on labour unions in the State to see reason and cooperate with the state govt in regularising PAYE deductions in conformity with the provisions of the Law. In the same vein, Govt wishes to caution labour officials on unruly behaviour and conduct that are detrimental to public interest and which are in violation of the provisions of labour laws