After delays, Tinubu’s govt offers minimum wage that can’t buy rice

The federal government has finally revealed its minimum wage offer, after prolonged delays that ignored workers’ struggle with Nigeria’s worst cost-of-living crisis ever.

At a meeting with labour leaders Wednesday, government representatives said the Tinubu administration would pay only N48,000 as minimum wage, just N18,000 more than the current rate, according to Joe Ajaero, president of the Nigerian Labour Congress (NLC).

The NLC and its sister organization, the Trade Union Congress, rejected the offer, Mr Ajaero told a news conference.

“Living Wage”

A bag of rice, a staple in Nigeria, costs at least N65,000. It was a little above N30,000 a year ago when the new government came to power. The prices of several food items have risen by over 100% in the last one year.

The government’s removal of petrol subsidy, devaluation of the naira and increase of electricity price, drove annual inflation to 33.7% in April, according to figures released by the National Bureau of Statistics Wednesday. Food inflation stood at 40.5%.

The rates, the highest in 28 years, have plunged millions into poverty as incomes and savings are wiped away.

President Tinubu has long pledged a “living wage” for workers in response to the unprecedented economic hardship, but his government has for months foot-dragged despite multiple labour protests.

In January, the government appointed a 37-member committee to negotiate a new wage with labour unions. The committee is chaired by the former head of the Civil Service of the Federation, Goni Aji.

The NLC president, Mr Ajaero, said the government’s offer showed “its apparent lack of seriousness in engaging in fair negotiations with Nigerian workers.”

“Despite earnest efforts to reach an equitable agreement, the less than reasonable action of the Government and the Organised Private Sector has led to a breakdown in negotiations,” he said, according to Punch.

“Government’s proposal of a paltry N48,000 (forty-eight thousand Naira) as the Minimum Wage does not only insult the sensibilities of Nigerian workers but also falls significantly short of meeting our needs and aspirations.”

Mr Ajaero argued that the amount amounted to wage reduction since the government had paid a wage award of N35,000 monthly temporarily in addition to workers’ salaries since last year to cushion the impact of the economic hardship.

“Furthermore, the Government’s failure to provide any substantiated data to support their offer exacerbates the situation. This lack of transparency and good faith undermines the credibility of the negotiation process and erodes trust between the parties involved,” he said.

“As representatives of Nigerian workers, we cannot in good conscience accept a wage proposal that would result in a reduction in income for federal-level workers who are already receiving N30,000 (thirty thousand Naira) as mandated by law, augmented by Buhari’s 40% Peculiar allowance (N12,000) and the N35,000 wage award, totalling N77,000 only,” he said.

Mr Ajaero urged the government to reconsider its position.

The labour unions are demanding N615,000 as minimum wage.