Nigerian labour unions are gearing up for a potential face-off with both federal and state governments, expressing dissatisfaction over the lack of progress in negotiating a new minimum wage for public sector workers. The failure of the Federal Government to establish a committee for wage negotiations has heightened tensions, with labour unions not ruling out the possibility of an industrial crisis.
The unease among workers stems from the soaring prices of goods and services following the removal of fuel subsidies by the Federal Government. The resulting inflation and increased cost of living have eroded the purchasing power of workers, prompting demands for a substantial increase in the minimum wage.
As of June 2023, workers and labour leaders advocated for a minimum wage hike from ₦30,000 to ₦250,000, later adjusted to ₦200,000 monthly. The Assistant General Secretary of the Nigeria Labour Congress, Chris Onyeka, highlighted the financial strain on workers, citing challenges in meeting basic needs such as rent, children’s school fees, and transportation costs.
In response to the escalating situation, the Trade Union Congress (TUC) has issued a warning of a potential industrial action if the government continues to overlook the urgency of wage negotiations. The Deputy President of TUC, Tommy Etuk, emphasized the need for the government to inaugurate the National Minimum Wage Committee promptly to facilitate negotiations.
President Bola Tinubu, in a statement, acknowledged the necessity of reviewing the national minimum wage to align with current economic realities, pledging people-focused economic policies.
Despite assurances, the delay in setting up the wage review committee has raised concerns among labour unions. The TUC threatened that failure to address the minimum wage issue promptly could lead to industrial disharmony.
While the Federal Government has yet to formally constitute the committee, a Presidency official confirmed ongoing discussions at the Federal Executive Council level. The official emphasized the government’s commitment to reviewing the minimum wage and assured that the committee would be inaugurated following legal procedures.
Labour unions in various states have been grappling with the implementation of the wage award, with some states yet to commence payments. The looming possibility of strikes adds to the challenges faced by workers, underscoring the urgency for decisive government action on minimum wage negotiations.