Eko Hot Blog reports that in response to the relentless inflationary pressures and rising living costs in Nigeria, Joe Ajaero, the President of the Nigeria Labour Congress (NLC), has indicated that organized labour might advocate for a new minimum wage of up to N1 million for Nigerian workers.
“This N1 million may be relevant if the value of the Nigerian (naira) continues to depreciate; if the inflation continues unchecked because the demand of labour is equally dependent on what is happening in the society,” stated Ajaero in an interview with Arise News on Sunday.
Ajaero pointed out that the cost of living has surged since President Bola Tinubu assumed office, citing the removal of fuel subsidies and other policies as contributing factors.
He emphasized that the demand for an increased minimum wage would be driven by the prevailing economic conditions.
“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.”
He highlighted the impact of inflation on the cost of essential goods, expressing concerns about the affordability of food items, such as a bag of rice priced at about N60,000/N70,000 and locally produced corn at around N56,000.
Ajaero emphasized the need for a minimum wage that addresses the rising costs of transportation and basic necessities.
“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?”
Ajaero criticized the delay in the constitution of a committee to negotiate the new minimum wage, pointing out that the current minimum wage is set to expire in April.
He expressed doubts about the effectiveness of the newly inaugurated committee, citing concerns about the composition of its members.
“If you have these people in the government team on the issue of minimum wage, some of us have not seen a bright future in the work of this new minimum wage committee.”
Last week, both the NLC and the Trade Union Congress (TUC) issued a 14-day strike notice to the Federal Government, expressing dissatisfaction with the government’s failure to implement a 16-point agreement signed in October 2023.
The unions demanded the fulfillment of the government’s obligations within the stipulated 14-day period starting from Friday, February 9, 2024.
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