Labour Takes Fresh Decision Over Minimum Wage

As Nigeria grapples with soaring inflation and escalating costs of living, organised Labour, led by the Nigeria Labour Congress (NLC), has proposed a bold N500,000 minimum wage for Nigerian workers.

This development comes as zonal public hearings on the new wage structure kick off today across six geopolitical zones, including Lagos, Kano, Enugu, Akwa Ibom, Adamawa, and Abuja.

In a recent interview on Arise TV, Joe Ajaero, the President of the NLC, hinted at the possibility of pushing for a minimum wage as high as N1 million, should the current inflationary trends persist.

This statement underscored the dire economic straits many Nigerian workers find themselves in and the urgent need for wage adjustments reflective of the realities on the ground.

A top official of the NLC, speaking to Punch under the condition of anonymity, revealed that the figure being considered at today’s meeting, based on proposals from state chapters, stands at N500,000.

This proposition aims to address the significant decline in purchasing power and the hardships faced by workers due to the current economic conditions.

The public hearings are set to gather insights and inputs from a diverse group of stakeholders, including state governors, ministers, civil society groups, and the private sector.

The goal is to arrive at a consensus on a new minimum wage that aligns with economic realities and fulfils workers’ aspirations.

The hearings are chaired by prominent figures, with Joe Ajaero presiding over the session in Yola, Adamawa State, representing the North-East zone, and the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, leading the South-West hearing in Lagos.

This initiative follows the inauguration of a 37-member panel by President Bola Tinubu’s deputy, Kashim Shettima, on January 30, 2024.

The panel, comprising representatives from the federal and state governments, the private sector, and Labour, is tasked with recommending a new national minimum wage by April 1, following the expiration of the current N30,000 minimum wage.

Ajaero said, “This N1m may be relevant if the value of the naira continues to depreciate; if the inflation continues unchecked because the demand of Labour is equally dependent on what is happening in the society.

“You will remember that by the time we were contemplating N200,000 (as minimum wage), the exchange rate was about N800/N900 (to a dollar). As we talk today, the exchange rate is about N1,400 or even more.

“Those are the issues that determine the demand and it is equally affecting the cost of living. And we have always said that our demand will be based on the cost of living index. You will agree with me today that even a bag of rice is going for about N60,000/N70,000 or more.

“A bag of locally produced corn is about N56,000 or more. Foodstuff is getting out of reach, now are we going to get a minimum wage that will not be enough for transportation even for one week?”

However, in an interview with Punch on Wednesday, a top official of the NLC said organised Labour would insist on any amount slightly above N500,000 as minimum wage based on the analysis of proposals from state chapters.

The official, who spoke in confidence because he was not authorised to speak to the media on the negotiation, explained that the cost-of-living analysis carried out in states was N900,000.

He said, “In reality, what they gave us from the states when we deflate inconsistencies is over N500,000, as the cost of living of an average family of six to meet their basic needs, for an average family to survive.

“But we know that when NLC deflates it, taking into consideration some of the things we think are padded, it will come to around slightly over N500,000.

“The NLC has done some scientific research on these parameters and the N30,000 that was paid. If you divide N30,000 in the last five years considering what that amount can purchase now, and how much a worker is to earn to buy the same thing, that’s nearly about N300,000 for that same amount.”

He, however, said the NLC’s demand would depend on the proposals submitted to its headquarters from state and local government chapters.

He added, “So, the reality is that the NLC will not ask for a national minimum wage that would be less than what the people from all the local governments in Nigeria have given us.”

The official confirmed that Ajaero would preside over the hearing in Yola, the capital of Adamawa state.

He said, “There will be a zonal public hearing on the National minimum wage in all six geopolitical zones simultaneously on Thursday (today).

“The president of Nigeria Labour Congress, Joe Ajaero, is the chairman of the meeting in the North-East taking place in Yola; there is also a meeting in the South-West, South-East, and South-South in Port Harcourt, Lagos, Abuja, and other states.”

According to him, the NLC state chapters do not negotiate the national minimum wage because they are not members of the tripartite committee.