The negotiations between the Organized Labour in Nigeria, which includes the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC), and the government over the new minimum wage have reached a crucial stage. Labour leaders have outrightly rejected the government’s suggestion of possibly setting the new minimum wage at ₦N100,000, arguing that such an amount is insufficient given the current economic realities faced by workers, especially in light of recent increases in electricity tariffs and other living costs.
These discussions have been fierce, with negotiations stalling, and Organized Labour walking out of a meeting last Wednesday in response to the government’s offer of ₦48,000, which Labour found grossly inadequate compared to their proposed ₦N615,000. The Chairman of the Tripartite Committee on the National Minimum Wage, Alhaji Bukar Goni, has since reached out to reconvene, suggesting that both parties might be willing to adjust their positions slightly.
In an interview with Vanguard in Abuja, NLC Head of Information and Public Affairs, Benson Upah, emphasized the need for the government to approach the negotiations with greater seriousness. He outlined the calculations behind Labour’s initial demand, which considered basic necessities such as accommodation and food for a typical family. The figures were drawn up based on the barest minimums, with accommodation pegged at N40,000 and daily feeding costs for a family set at N500—a figure that is already below the National Bureau for Statistics’ (NBS) average meal cost of N900.
The recent 250% increase in electricity tariffs only adds another layer to the burden on workers, reinforcing Labour’s stance that even N100,000 would be inadequate. Upah stressed that such an amount would not meet the essential needs of an average worker, especially in a family setting.
Professor Theophilus Ndubuaku, a member of the NLC delegation on the Tripartite Committee, further argued that the government’s proposal is out of touch with the economic realities of ordinary workers, many of whom are struggling to cope with escalating costs on multiple fronts. He pointed out that even artisans in the private sector earn more than N100,000, highlighting the discrepancy between government figures and the actual cost of living.
During these challenging negotiations, there are broader issues at play. Nigeria needs to enhance its productive capacities and reduce its reliance on imported goods, which drain foreign reserves and contribute to economic instability. Ndubuaku criticized the government’s expenditure patterns, particularly its investment in costly infrastructure projects and imported vehicles for Customs, which seem to contradict the government’s claims of financial constraints.
The labor leaders are calling for a comprehensive breakdown of how the government intends to allocate the proposed wages. They demand transparency and realism in how wage adjustments are calculated, including detailed considerations for housing, healthcare, transportation, and food. They argue that the government’s approach to the negotiations and its broader economic policies should reflect a genuine commitment to improving the livelihoods of its workers.
