As negotiations for a new minimum wage continue, the Federal Government and organised labour have reached a deadlock with no consensus reached.
During the International Workers’ Day celebration in Abuja, President Bola Tinubu highlighted this impasse in discussions.
Responding to the NLC’s call for a N615,000 minimum wage, President’s Special Adviser on Information and Strategy, Mr Bayo Onanuga, emphasized that there was no agreement on the wage amount.
Nigeria Labour Congress President, Joe Ajaero, defended the N615,000 demand, stating that it was crucial to prevent the impoverishment of workers.
Initiated by the President in January, a tripartite committee was set up to review the N30,000 minimum wage established by former President Muhammadu Buhari.
Last month, both the NLC and the Trade Unions Congress submitted a proposal of N615,000 minimum wage, however, the government did not announce the new wage at the May Day celebration, citing a lack of consensus.
Federal Ministry of Labour and Employment officials, speaking anonymously, revealed a stalemate in negotiations as the NLC pushed for N615,000 while the government and private sector suggested figures between N60,000 and N70,000.
Ajaero defended the N615,000 minimum wage proposal, stating that it was carefully calculated considering the economic landscape and the needs of an average Nigerian family.
He criticized the recent 25-35% pay rise for civil servants, calling the timing of the announcement mischievous amid unresolved wage discussions.
Describing the N615,000 as a living wage, Ajaero detailed the breakdown of the proposed amount, outlining essential expenses like housing, utilities, food, healthcare, education, clothing, and transportation.
Despite the negotiation deadlock, President Tinubu assured workers of the government’s commitment to providing better living and working conditions with a fair living wage.
Tinubu expressed optimism in resolving the impasse to announce a living wage soon, emphasizing the government’s openness to suggestions beyond just a minimum wage.
He reiterated the government’s dedication to enhancing worker welfare, improving conditions, and supporting their success through various relief programs and the upcoming minimum wage review.
Commending Nigerian workers for their contribution to national peace and development, Tinubu recognized their hard work and patriotism in driving the country forward.
In the diverse spheres of work, there exist individuals ranging from clerical officers ensuring precise documentation and correspondence distribution, to vigilant security officers dedicated throughout all seasons, and educators shaping the nation’s future by imparting knowledge to upcoming generations. Furthermore, there are relentless doctors working to preserve valuable lives, as well as Nigerian workers maintaining the flame burning.
Presidency disputes labor demands
The Presidency explained the negotiation deadlock, citing the organized labor’s request for a N615,000 minimum wage, which the Federal Government deemed unfeasible to pay. The President’s Special Adviser on Information and Strategy, Onanuga, emphasized the necessity for an amount agreeable to both the government and private sector.
Highlighting that the government could only afford between N60,000 and N70,000 monthly, an anonymous Ministry of Labour official disclosed that exceeding this range was impractical for the government.
During the inauguration of the minimum wage committee, Vice-President Shettima urged prompt resolution before the current N30,000 minimum wage lapses by March 2024.
The Minimum Wage Act of 2019, signed by former President Buhari, approved N30,000 for federal and state workers, with mandatory reviews every five years. The removal of fuel subsidies by Tinubu in May 2023 led to increased living costs. Despite an additional NGN 35,000 wage award, organized labor advocated for a comprehensive minimum wage review in 2024.
Labor challenges government borrowings
Organized labor criticized excessive borrowing by the Federal Government and stressed the adverse effects of the devaluation and inflation caused by floating the naira. They called for an end to policies enriching a few while impoverishing the majority.
The labor unions urged government transparency, accountability for public funds, and a balanced approach prioritizing the welfare of citizens and supporting local industries for a prosperous Nigeria.
Addressing the energy crisis, labor criticized mismanagement of resources, emphasized the importance of collaborating for nationwide energy benefits, and demanded urgent actions on refinery operations.
They rejected unilateral tariff hikes and advocated for fair privatization assessments to ensure quality energy services benefiting all citizens.
Labor unions called for the reversal of the recent electricity tariff increase within a week to prevent adverse impacts on manufacturers and promote fair access to energy resources.