In the face of an escalating economic crisis, Nigerian workers represented by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) eagerly await tangible actions from the Federal Government concerning the Memorandum of Understanding (MOU) they signed. The agreement was forged amidst mounting inflation and increased financial strain caused by the government’s removal of petrol subsidies.
The decision to strike, initially scheduled for October 3, 2023, was averted through negotiations between the organized labor and the Bola Tinubu-led Federal Government. The MOU, intended for implementation within 30 days, holds the promise of addressing the grievances of the labor unions and offering much-needed relief to Nigerians.
United in their pursuit of relief measures, the NLC and TUC resolved their differences and consolidated their demands. In a joint press conference held in Abuja, NLC President Joe Ajaero and TUC counterpart Festus Osifo expressed concern over the hardships faced by Nigerians across all states. They criticized the government’s perceived inaction in addressing the consequences of the rising cost of living.
The MOU includes several key agreements, such as a wage award of N35,000 to all federal government workers, which commenced in September. A minimum wage committee is expected to be inaugurated within a month. The government has also suspended the collection of value-added tax on diesel for six months from October 2023, in alignment with recommendations from the Presidential Committee on Tax Reforms.
Additionally, a N100 billion allocation for high-capacity Compressed Natural Gas (CNG) buses for mass transit in Nigeria was accepted. Initial plans encompass the distribution of 55,000 CNG conversion kits and the establishment of state-of-the-art CNG stations across the nation. The rollout is set to commence in November, with pilot programs at ten campuses nationwide.
The government pledged to introduce various tax incentive measures for the private sector and the general public. The contentious issue of outstanding salaries and wages for tertiary education workers in federal-owned institutions will be referred to the Ministry of Labour and Employment for further engagement, although the government agreed to pay only four of the eight months of withheld salaries during the ASUU strike.
In an effort to support vulnerable citizens, the Federal Government will provide N25,000 per month for three months starting in October 2023 to 15 million households. The initiative also involves increased support for the subsidized distribution of fertilizers to farmers nationwide.
The organized labor unions called upon the government to encourage state governments, through the National Economic Council and Governors Forum, to implement wage awards for their workers, extending similar considerations to local government and private sector employees.
In his October 1, 2023, Independence Day address, the President announced these measures, leading to the suspension of the planned indefinite nationwide strike set for October 3, 2023. However, the NLC has accused Minister of Labour and Employment Simon Lalong of deviating from the agreement, citing his alleged partiality in labor matters.
Benson Upah, the Head of Protocol and Information of the NLC, expressed dissatisfaction with the implementation of the MOU, emphasizing that the government could act faster and more effectively to address the pressing economic issues.
Since the removal of fuel subsidies in May 2023, the cost of living has soared, with August 2023 figures from the National Bureau of Statistics reporting an inflation rate of 25.80%, up from 24.08% in July 2023. The food inflation rate rose to 29.34% year-on-year. The labor movement and civil society have criticized the government for failing to fulfill promises of wage increases and palliatives for citizens amidst ongoing economic challenges.