As the Federal Government and Organised Labour return to the negotiation table, the issue of a fair minimum wage for workers remains a contentious subject matter. The government’s last proposal of N54,000, an improvement over the earlier proposed N48,000, has been met with resistance from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), who are steadfast in their demand for a minimum wage of N615,000. The large disparity between these two figures only shows the disconnect between the government and the realities faced by the average Nigerian worker, represented by the labour unions.
The removal of subsidy on petroleum products, the floating of the naira and the increment in electricity tariff have significantly increased the cost of living. According to the Nigeria Bureau of Statistics (NBS), Nigeria’s inflation rate climbed to 33.69 per cent in April 2024. In a recent report, the BBC described Nigeria’s current economic situation as the “worst in a generation”.
It is clear that with the current economic condition, a wage increase above the government’s N54,000 is the right thing to do. FG’s recent announcement of a 25 to 35 per cent pay rise for civil servants, though a step in the right direction, does not address the broader call for a new minimum wage. The NLC’s demand for N615,000, while ambitious, is rooted in a detailed analysis of the cost of living and the needs of an average family of six.
For a meaningful resolution, both parties must approach the negotiation table with a willingness to clearly understand and address the underlying economic challenges faced by Nigerians. The federal government should acknowledge and capture the interest of Nigerian workers and their struggles in the present-day economy. The proposed amount by the government cannot purchase a bag of rice or feed an average family of six for a month. On the other hand, there is a need for organised labour to remain open to dialogue, recognising the financial constraints and economic challenges the government claims to face.
To save the country from further economic downturn as a result of strike actions and mass protests, finding a common ground is very important. Continuous dialogue and periodic reviews of the minimum wage in line with inflation and economic conditions could help prevent future scenarios. The government and organised labour must arrive at a solution that not only meets the current needs of workers but also lays the foundation for a more equitable economic future.