In a significant development, organized labor in Nigeria has issued a two-week ultimatum to state governors to begin negotiations on implementing the N35,000 wage award for workers, as stipulated in the Memorandum of Understanding signed by the Federal Government, the Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC).
The NLC and TUC chapters in various states delivered this ultimatum, urging governors to expedite the necessary procedures to implement the award, intended to alleviate the economic challenges arising from the removal of fuel subsidies.
The deadline for the wage award’s payment is set to expire in the next two weeks, prompting labor unions to press state governments to initiate the implementation process.
President Bola Tinubu has simultaneously inaugurated a substantial cash transfer program aimed at providing financial relief to 15 million households to mitigate the economic hardships caused by fuel subsidy removal. Under this program, each household is expected to receive N25,000 per month for a three-month period. This initiative is set to disburse around N1.13 trillion.
The Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, highlighted that approximately 61 million Nigerians would benefit from this cash transfer program.
The national leadership of the NLC and TUC reached an agreement with the Federal Government on October 1, under which a wage award of N35,000 was pledged to all federal workers starting from September. This agreement stipulated that federal workers would receive the wage award for six months, while states were encouraged to extend similar benefits to their employees.
Earlier, labor unions had threatened a nationwide strike on October 3, but this action was postponed with the condition that the wage award, cash transfer, and other resolutions be implemented within 30 days following the Memorandum of Understanding’s signing.
State Chapters’ Responses:
Various state chapters of the NLC and TUC have made concerted efforts to negotiate with their respective state governments. In Kano State, the NLC Chairman, Kabiru Inuwa, revealed that they had requested immediate implementation of the N35,000 wage award and are currently awaiting the state government’s response. The unions hope that the payment will commence before the expiration of the given deadline.
Gombe State’s NLC Secretary, Ibrahim Fika, clarified that the 30-day ultimatum, which has two weeks remaining, also applies to state governments. The TUC in Rivers State expressed full compliance with the national directive and indicated that states failing to adhere to it would be in breach of the agreement.
In Benue State, the Chairmen of NLC and TUC, Terungwa Igbe and Gideon Akaa, reported that they had written to the state governor requesting the wage award’s implementation but had not received a response yet. They expressed optimism that the state government would honor the commitment.
Similar negotiations are taking place in Sokoto and Ogun states, with state leaders engaged in discussions with their respective governments to ensure the wage award’s implementation. In Katsina State, labor unions are expecting a response from the state government regarding a meeting to discuss workers’ welfare.
State governments may consider forming committees to address labor unions’ demands in response to the delay in wage award payments.
Possible Nationwide Strike:
The national leadership of the NLC and TUC issued a 30-day ultimatum to the government, which is still in effect. If the government fails to implement the Memorandum of Understanding within the stipulated timeframe, labor unions have threatened to call for an indefinite strike without prior notice.
Cash Transfer Program Launched:
Simultaneously, President Tinubu has initiated the conditional cash transfer program, symbolically presenting N25,000 to five beneficiaries. This program aims to provide financial relief to 15 million households affected by the removal of fuel subsidies, following an agreement between the Federal Government and organized labor.
The Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, emphasized that approximately 61 million Nigerians would directly benefit from this program over the next three months. Additionally, other measures, such as low-cost shelter for the poor and internally displaced persons, will be introduced to alleviate poverty in the country.
The World Bank has affirmed that cash transfers are an effective tool for reducing poverty and helping vulnerable populations cope with economic shocks and rising living costs. This initiative is a significant step towards alleviating the challenges brought about by the removal of fuel subsidies, aiming to provide renewed hope and dignity to millions of Nigerians.