Former President Olusegun Obasanjo has criticised the newly approved N70,000 minimum wage, arguing that it is insufficient to meet workers’ essential needs such as transportation, food, and housing.
In his latest book, Nigeria: Past and Future, Obasanjo expressed concerns about the role of labour leaders in the wage negotiations, accusing them of compromising workers’ interests for personal gain.
“The minimum wage does not even cover transportation costs for some workers, let alone food, housing, and family upkeep,” he wrote.
He also condemned what he described as the increasing politicisation of labour leadership, alleging that some union leaders exploit their positions to advance political ambitions rather than advocate for workers’ welfare.
“How did it happen that a trade union leader, while in office, was negotiating with a political party to be adopted as a gubernatorial candidate?” he questioned.
The former president further claimed that some labour leaders accept financial inducements to suppress agitation, thereby weakening the unions’ ability to fight for better wages and conditions.
“Rather than negotiate in the interest of the workers, they do sabre-rattling, and they are called into the room, money in large amounts is stuffed into their hands, and they keep quiet,” he alleged.
Obasanjo also criticised government officials for openly admitting to paying off labour leaders to prevent protests.
“How do we explain a senior official close to the President saying, ‘We have paid them to keep quiet and stop agitating’?” he asked.
While acknowledging individuals’ right to pursue political careers, he argued that union leaders should not use their positions as a stepping stone to politics, as this creates a conflict of interest.
To address this issue, he suggested enacting a law that would require labour leaders to wait at least five years after leaving office before contesting for political positions.
President Bola Tinubu signed the N70,000 minimum wage into law on 29 July 2024, following extensive negotiations with organised labour and private sector representatives.
Initially, labour unions had pushed for a N250,000 monthly wage, but this was eventually reduced to N70,000 after deliberations concluded on 18 July 2024.
The previous minimum wage, set at N33,000, had been in effect since April 2019 under former President Muhammadu Buhari.