In a recent interview with Arise News, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, discussed the possibility of organised labour pushing for a new minimum wage of up to N1 million for Nigerian workers.
Ajaero linked this potential demand to the ongoing inflation and rising cost of living, particularly since President Bola Tinubu assumed office, citing factors such as the removal of fuel subsidy.
He highlighted the impact of inflation on the cost of living and stressed that the demand from organised labour would be influenced by these economic factors.
Ajaero emphasized the necessity of considering the depreciating value of the Nigerian naira and the prevailing exchange rate, which has significantly increased compared to the time when the last minimum wage was deliberated.
Ajaero pointed out that the cost of living index, including soaring prices of essential goods like rice and corn, should be taken into account when determining the adequacy of a new minimum wage. He expressed concerns about the looming expiration of the old minimum wage by April and criticized the delay in setting up a committee for negotiation.
The NLC president raised doubts about the efficiency of the recently inaugurated committee, particularly regarding the composition that includes governors who have not implemented the existing minimum wage.
Ajaero highlighted challenges in foreseeing a positive outcome from the committee’s work, given the perceived lack of commitment and past non-compliance by some members.
In response to the Federal Government’s failure to implement a 16-point agreement signed in October 2023, the NLC and the Trade Union Congress issued a 14-day strike notice last week.
This notice serves as an expression of frustration over policies such as the rise in petrol price and the devaluation of the naira, contributing to increased hardships and inflation.
The unions have set a deadline for the government to fulfill its obligations within the stipulated 14-day period starting from Friday, February 9, 2024. The looming negotiations and potential wage increase underscore the challenges faced by Nigerian workers amidst economic uncertainties.