NLC Makes Fresh Announcement On Minimum Wage
As Nigeria faces rising inflation and increasing living costs, the Nigeria Labour Congress (NLC) is advocating for a bold N500,000 minimum wage for Nigerian workers.
On Wednesday, the NLC President, Joe Ajaero, mentioned the possibility of pushing for a higher minimum wage of up to N1 million if inflation continues. This highlights the severe economic situation many Nigerian workers are experiencing and the urgent need for wage adjustments that reflect the current realities.
A senior NLC official, who spoke anonymously to Punch, disclosed that the proposed minimum wage being discussed at the ongoing meeting is N500,000. This proposal aims to tackle the significant decrease in purchasing power and the difficulties faced by workers due to the prevailing economic conditions.
The zonal public hearings, taking place across six geopolitical zones, will gather feedback from various stakeholders, including state governors, ministers, civil society organizations, and the private sector.
The objective is to reach a consensus on a fresh minimum wage that is in line with economic realities and meets the expectations of workers.
The hearings are overseen by notable individuals, with Joe Ajaero presiding over the session in Yola, Adamawa State, representing the North-East zone, and Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, leading the South-West hearing in Lagos.
This endeavor comes after President Bola Tinubu’s deputy, Kashim Shettima, inaugurated a 37-member panel on January 30, 2024.
The panel consists of representatives from the federal and state governments, the private sector, and Labor, and their responsibility is to propose a new national minimum wage by April 1, once the current N30,000 minimum wage expires.
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?”
Nevertheless, during an interview with Punch on Wednesday, a senior representative from the NLC emphasized that organized Labor would demand a minimum wage slightly exceeding N500,000.
This demand is based on a thorough examination of proposals put forth by state chapters.
The official, speaking confidentially due to lack of authorization to engage with the media on negotiation matters, further clarified that the cost-of-living analysis conducted in various states amounted to 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.
