The organized labour union has commenced an indefinite nationwide strike today, June 3, 2024, following the Federal Government’s refusal to meet the labour union’s demand for a minimum wage increase above N60,000.
The strike, which has seen various sectors including aviation unions withdrawing services, is a response to what the Nigeria Labour Congress and the Trade Union Congress consider an inadequate government proposal, despite a recent increase from N57,000 to N60,000.
A Historical Perspective on Nigeria’s Minimum Wage
The struggle for fair labor compensation in Nigeria has deep roots, dating back to the 1950s when Chief Obafemi Awolowo, as Premier of the Western Region, implemented a minimum wage policy that set a regional precedent. Post-independence, the quest for a national minimum wage gained momentum, with significant political figures like Awolowo advocating for a five-pound minimum wage for federal workers in 1959.
The enactment of the first National Minimum Wage Law in 1981 by President Shehu Shagari, which set the wage at 125 naira per month, marked a milestone in the country’s labor history. Since then, the minimum wage has seen multiple revisions, with the most recent being the N30,000 per month established under President Muhammadu Buhari in 2019.
The Present Standoff
The current debate intensified in January 2024 when a 37-member tripartite committee was formed to review the National Minimum Wage. However, the committee has failed to reach a consensus, leading to the NLC and TUC setting a May 31 deadline for the government to establish a new wage policy. The unions’ demand for a minimum wage of at least N60,000 has not been met, prompting the strike action.
Edo state has taken a bold step, announcing a new minimum wage of N70,000, effective May 1, 2024, while Lagos had been paying a N35,000 wage award, amounting to over N70,000 salaries, since January 2024. These actions underscore the ongoing tension between state and federal governments over wage policy, reflecting the complex interplay between economic realities and political commitments.
Impact and Reactions
The strike has brought significant disruptions across the country, with reports of aviation unions ceasing operations at airports and meetings between labour and the National Assembly ending in deadlock. The Minister of Information and National Orientation has expressed concerns that the N494,000 minimum wage demanded by organized labour could destabilize the Nigerian economy.
As the nation grapples with this impasse, the impact of the strike on Nigeria’s socio-economic landscape continues to unfold. The NLC’s firm stance on the minimum wage reflects a broader struggle for workers’ rights and fair compensation in the face of inflation and rising living costs. The outcome of this dispute will likely have far-reaching implications for the country’s labor policies and economic stability.
