This was revealed in a statement issued by the NFF Communications Department on Friday.
According to NFF President Ibrahim Musa Gusau, the federation had been working on resolving the tax issue for three days.
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Gusau also noted that an agreement in principle had already been reached with Labbadia before the tax complications arose.
He stated, “We have been on the tax issue for the past three days, and I told him clearly that there was no way the NFF would agree to offset the concomitant tax percentage on his salary that will be demanded by German tax authorities.
It is not possible for us to shoulder the responsibility of shelling out another money, between 32% to 40% of his salary, after paying the agreed monthly wage.
“The NFF and Mr. Labbadia reached an agreement in principle before we made the announcement that he would become the Head Coach of the Super Eagles.
The tax details were never part of our discussions, and he had personally agreed to all terms before the tax issue came up.
“We were doing our best to be flexible in the discussions, but he was adamant that the NFF had to pay the full tax amount as well. We simply cannot do that.”
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