The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) walked out of minimum wage negotiations with the Federal Government on Wednesday, May 15, 2024, after the government proposed a new minimum wage of N48,000. This offer was significantly lower than the N615,000 demanded by the unions.
During an emergency press conference held shortly after abandoning the session, NLC President Joe Ajaero expressed outrage at the government’s proposal, calling it “an insult to the sensibilities of Nigerian workers.”
“This paltry offer of N48,000 by the government is not only an insult but also fails to meet the basic needs and aspirations of workers,” Ajaero stated. He explained that the N615,000 demand was based on a thorough analysis of the economic situation and the needs of an average Nigerian family of six.
Ajaero detailed the rationale behind the unions’ demand, breaking down expenses such as housing, utilities, and food. “For a living wage, we have calculated housing and accommodation at N40,000, electricity at N20,000, food for a family of six at N270,000, and other essentials. This brings the total to N615,000,” he explained.
The negotiation process had already hit a snag in late April when the unions first insisted on the N615,000 minimum wage. Despite the impasse, the government maintained that the unions’ demand was unreasonable.
The organised private sector had initially proposed a slightly higher minimum wage of N54,000, still far below the unions’ demand. “The private sector’s proposal, while higher than the government’s, also fails to meet the actual needs of Nigerian workers,” Ajaero argued.
Ajaero criticized both the government and the organised private sector for their roles in the breakdown of negotiations. “The government’s proposal and the private sector’s reluctance to negotiate fairly have led to this unfortunate situation,” he said.
He accused the government of lacking transparency and failing to provide data to support its offer. “The government’s failure to present substantiated data undermines the credibility of this negotiation process,” Ajaero noted.
In response to the walkout, the Nigeria Employers’ Consultative Association (NECA) urged the unions to return to the negotiating table. NECA’s Director-General, Mr. Adewale-Smatt Oyerinde, described the walkout as unfortunate, emphasizing the need for continued dialogue.
“The action of Labour to walk out even when negotiations have not started, though within its rights, is unfortunate and delays the assignment of the Minimum Wage Committee,” Oyerinde remarked.
Experts and stakeholders have weighed in on the impasse, with many criticizing the government’s proposal. Professor Akpan Ekpo, an economist, called the N48,000 offer “ridiculous” given the current economic situation. Dr. Ikenna Nwosu of the Nigerian Economic Summit Group highlighted the need for a higher increase to match the inflation rate.
Labour unions have reiterated their commitment to advocating for fair wages and have called on the government to approach negotiations with a genuine willingness to address workers’ needs. “We remain committed to fighting for the rights of Nigerian workers and urge the government to reconsider its position,” Ajaero concluded.
The Federal Government has yet to respond to the unions’ walkout. The next session of the minimum wage negotiation is set for May 30, 2024.