Saturday, June 29, 2024

Strike cripples Nigeria as workers demand higher minimum wage

The strike called by the NLC and TUC left millions without power on its first day.

A nationwide strike called by the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) brought the country to a standstill on Monday, its first day.

Businesses were shuttered, power outages plunged many cities into darkness, and airlines cancelled flights in Lagos and Abuja, leaving passengers stranded. Schools, offices and hospitals across the country have also been closed.

The strike, which began Monday morning, follows weeks of failed negotiations between the unions and the Nigerian government regarding an increase in the national minimum wage.

The current minimum wage, set at N30,000 per month, has been deemed insufficient by unions due to soaring inflation, which has eroded purchasing power and caused significant hardship for many Nigerians.

Millions of Nigerians are feeling the pinch of rising living costs. The inflation rate rose to 33.67% in April, according to official figures, driven by the government’s removal of petrol subsidy, devaluation of the naira, low food production, and scarcity of foreign exchange.

Many Nigerians, however, believe the rate of price change in the last one year is over 100%. A bag of rice that sold at N30,000 a year ago now sells at over N75,000 a bag, far more than the minimum wage.

“People cannot breathe because of the economic situation. This is getting too much,” says Eno Udofia, a health worker in Uyo, Akwa Ibom state.

Stalled Negotiations

Talks between the unions and the government reached a deadlock last week, prompting the unions to call for a nationwide strike. The government has proposed a 100% percent increase in the minimum wage to N60,000, but the unions are demanding N494,000 to meet the basic needs of workers.

The labour unions accuse the government of being deliberately slow to conclude talks that started nearly a year ago, while it swiftly imposes additional taxes on Nigerians.

Finance minister Wale Edun said the government cannot afford the amount demanded by the labour unions as it would cripple the economy.

Impact on Businesses and Economy

The strike is expected to cause significant economic disruption in the coming days. Many banks closed on Monday after opening briefly.

The Transmission Company of Nigeria, which controls electricity transmission, said in a statement that its stations were forcibly shut by workers’ unions shortly after midnight on Sunday.

“The situation is such that the labour Union is still obstructing grid recovery nationwide,” it said.

This strike is the fourth since President Bola Tinubu came to office last year.


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