Minimum Wage: Labour May demand N500,000 instead of #1m Earlier Proposed 

 

 

*House Demands Living Wages for Workers

 

By Miracle Ogunde

 

With the public hearing on the new minimum wage, which will be held simultaneously in all six geopolitical zones of the country, it is expected to receive inputs from organised Labour, state governors, ministers, civil society groups, and the organised private sector on a new minimum wage reflective of the current economic realities and the workers’ aspirations.

 

However, a top official of the NLC, who confided in newsmen on Thursday said based on proposals submitted by state chapters to the congress’ headquarters, the organised Labour might push for N500,000 at today’s meeting.

 

The President of the Nigeria Labour Congress, Joe Ajaero, had recently stated that if the ongoing inflation continued, organised labour might push for a new minimum wage of up to N1m for Nigerian workers.

 

President Bola Tinubu through his deputy, Kashim Shettima, on January 30, 2024, inaugurated a 37-member panel on the new minimum wage at the Council Chamber of the State House in Abuja, with its membership cutting across the federal and state governments, the private sector, and labour.

 

The panel, as learnt, is to recommend a new national minimum wage for the country on or before April 1 following the expiration of the current N30,000 minimum wage as provided by the law.

 

However, the President of the NLC, Ajaero, stated recently during an interview on Arise TV that if the ongoing inflation continued unabated, organised labour might push for a new minimum wage of up to N1m for Nigerian workers.

 

According to Ajaero, the demand from organised labour would be influenced by the cost of living which has been increasing since President Bola Tinubu assumed office, notably due to the removal of the fuel subsidy and other policies.

 

He 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?”

 

Speaking in an interview with newsmen 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 got 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.

 

“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,” he said.

 

Meanwhile, the House of Representatives on Wednesday resolved to put in place modalities for the payment of living wages to Nigerian workers.

 

The resolution of the lawmakers followed the adoption of a motion during a plenary session, moved by Minority Leader of the House, Kingsley Chinda, and 39 others.

 

Leading the debate on the motion titled “Need to provide living wage for workers in Nigeria,” Deputy Minority Leader of the House, Aliyu Madaki, said the rising rate of inflation in the country had made it difficult for the average Nigerian to afford basic needs including food, water, housing, education, healthcare, transportation, clothing, among others.

 

According to him, the rising inflationary rate in the country has also had a negative effect on the cost of living, with the cost of food, accommodation, education, and transportation skyrocketing.

 

Relying on Article 23 of the United Nations Universal Declaration of Human Rights which provides that “Every individual who works has the right to just and favourable remuneration to ensure such a person and his or her family exist in dignity”, Madaki argued that a new and improved wage for the Nigerian worker has become necessary.

 

The lawmaker also argued that Nigeria, being a member of the United Nations and a subscriber to the Sustainable Development Goals number 17 which requires the payment of a living wage, should brace up and do the needful for her workers.

 

Following the removal of fuel subsidy by the Federal Government in May 2023 and the provisions of palliatives to cushion the effect, the rise in transportation cost and food prices has led to calls for a new wage by the organised labour and other concerned Nigerians.

 

Recall that the minimum wage (in Nigeria) was increased by the president recently, but the purchasing power is low owing to the continued rise in the cost of living in the country and the fall of the Naira.

 

Madaki recalled that in 2018, Trade Economics reported “The living wage for an individual Nigerian and a Nigerian family to be N43,200 per month and N137,600 per month, respectively,” adding that “This is a pre-subsidy removal report.”

 

Given the economic reality in the country today, the House maintained that “No labourer can live in Nigeria with a wage of less than N100,000.00 per month.

 

Starnews NG gathered that the President of the Nigeria Labour Congress, Joe Ajaero, will chair the meeting in the North-East taking place in Yola, the Adamawa State capital.

 

The Minister of Finance and Coordinating Minister for the Economy, Wale Edun, will preside over the South-West hearing taking place in Lagos.


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