Minimum Wage: Nigerian Government And Labour Unions Reach Agreement, Potentially Ending Strike Today

By: Nwakaji Martins

The indefinite strike by labour unions is on the verge of concluding following an agreement reached late Monday between the unions and the federal government regarding a new national minimum wage.
The agreement was finalized during a meeting coordinated by the Secretary to the Government of the Federation (SGF), George Akume, in Abuja. The presence of the National Security Adviser, Nuhu Ribadu, at the meeting, underscored the significance attached to it by the administration of Bola Tinubu. While the specific amount for the new minimum wage was not disclosed, both parties settled on the federal government offering a higher figure than the current N60,000.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) initiated an indefinite strike on Monday to pressure the government into agreeing on a new minimum wage for workers, along with reviewing the electricity price hike for certain consumers. The agreement, signed on Monday, involved the President of the NLC, Joe Ajaero; the President of the TUC, Festus Osifo; the Minister of Information, Mohammed Idris, and the Minister of Labor, Nkiruka Onyejeocha. “The President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria, is dedicated to implementing a National Minimum Wage that surpasses N60,000,” as stated in the agreement.

To expedite the finalization of the new minimum wage agreement, the Tripartite Committee on National Minimum Wage is scheduled to convene daily over the next week. The objective is to achieve a mutually acceptable minimum wage that satisfies both the government and the labour unions. As part of the agreement, the Tripartite Committee will meet daily over the next week to reach a consensus on a National Minimum Wage. Labour, recognizing the commitment of the President, agrees to convene a meeting of its organs promptly for consideration. An additional assurance is that no worker will face repercussions for participating in the industrial action.
Following the agreement, the leadership of NLC and TUC is set to brief their unions’ executives and those of other affiliated unions on Tuesday to gain approval to suspend the strike. The approval is anticipated to be granted, and the strike may be halted thereafter. The unions had previously stated, “The current minimum wage, by law, expired on April 19, 2024, necessitating an immediate review.” They criticized the recent electricity tariff hike for a segment of Nigerians, deeming it an unsustainable burden for businesses and workers.

The unions rebuked the government’s proposal of N60,000 as the new minimum wage, citing it as inadequate and insensitive to the financial challenges faced by workers due to government policies like the removal of the petrol subsidy, naira devaluation, and increased electricity tariffs. “The government’s offer belittles the severe hardships imposed on workers by its insensitive and oppressive economic policies,” the unions contended.
Emphasizing that their demand for a new national minimum wage aligns with international standards and legal obligations, the labour unions referenced the conventions of the International Labour Organization (ILO), particularly the Minimum Wage Fixing Machinery Convention 26 of 1928 and the Minimum Wage Fixing Convention 131. These conventions mandate member nations to establish a minimum wage that ensures workers receive a living wage. Nigeria, as a signatory, has had a national minimum wage in place by law since 1961.

Nigeria implemented its first minimum wage in 1981, setting it at N125 (approximately $188 at that time), equivalent to N282,000 at the current exchange rate. However, the real value of wages has significantly declined, plunging many workers into poverty. The strike initiated by the labour unions, as reported by Newsmen, commenced on Monday morning, causing disruptions at public facilities like airports, schools, and hospitals while impacting private businesses such as banks and electricity companies. In an earlier statement on Monday, Mr. Idris affirmed that President Tinubu is dedicated to addressing Nigeria’s economic challenges through compassionate and thoughtful policies.