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Labour considers N1m as new minimum wage

Ademola Damilola by Ademola Damilola
February 12, 2024
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Labour considers N1m as new minimum wage
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The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has indicated that if the current inflationary trend persists, organized labor may advocate for a new minimum wage of up to N1 million for Nigerian workers. Ajaero attributed this potential demand to the rising cost of living, particularly since President Bola Tinubu assumed office, citing the removal of fuel subsidies and other policies as contributing factors.

During an interview with Arise News on Sunday evening, Ajaero emphasized that the demand for a higher minimum wage would be influenced by economic factors, such as the depreciation of the Nigerian naira and unchecked inflation. He pointed out that the exchange rate has significantly increased from about N800/N900 to a dollar when the labor union was initially contemplating a N200,000 minimum wage.

Ajaero explained, “Those are the issues that determine the demand, and it is equally affecting the cost of living. 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?”

He highlighted the urgency of addressing the upcoming expiration of the current minimum wage in April, expressing skepticism about the government’s commitment to the negotiation process. Ajaero criticized the delay in setting up a committee for negotiations and raised concerns about the composition of the committee members, including governors who have not implemented the existing minimum wage.

In response to the perceived lack of government commitment, both the NLC and the Trade Union Congress issued a 14-day strike notice to the Federal Government last week Thursday. The notice expressed frustration over the government’s failure to implement a 16-point agreement signed in October 2023, aimed at alleviating hardships caused by the rise in petrol prices and the devaluation of the naira. The unions demanded the government fulfill its obligations within the stipulated 14-day period starting from Friday, February 9, 2024.

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