The federal government has cautioned against the nationwide industrial strike led by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) since 3rd June, stating that it could have adverse effects on the Economy during this crucial period. Government argued that the proposed ₦494,000 national Minimum Wage by organized labour is not feasible due to the total wage bill adding up to ₦9.5 trillion. Such a high amount can potentially disrupt the economy and put the well-being of more than 200 million Nigerian citizens at risk.
On the other hand, the NLC and TUC were reportedly dissatisfied with the government’s approach to negotiating a new minimum wage and decided to go on an indefinite nationwide strike. However, Minister of State for Labour and Employment, Hon. Nkeiruka Onyejoecha, cautioned that the proposed strike would not be beneficial for the nation and its citizens. A statement signed by Emameh Gabriel, the minister’s media aide, advised against initiating a strike while negotiations are still in progress. Doing so would worsen economic difficulties and increase the hardships faced by millions of Nigerians already struggling to make ends meet on a daily basis.
Government had proposed a 100 percent raise of ₦60,000.
In a plea for Peace, Onyejeocha implored the unions to revisit their choice and maintain open communication to reach a mutually beneficial resolution. She said the organized labour unions should uphold the values of social dialogue, adding that a strike at this time would have a detrimental impact on the most marginalized members of society. The minister cautioned that the implementation of a new minimum wage should not result in extensive job cuts, especially within the Organised Private Sector, where the majority of the country’s employees are hired.
Even with the government’s efforts to accommodate their requests by rescheduling meetings and offering incentives, Labour unions abruptly left the negotiations table on May 31st. Onyejeocha conveyed her frustration with their unwavering demand for a 1,547 percent wage increase, following the government’s proposal of a 100 percent raise. The labour unions’ requests to drastically increase the national minimum wage are deemed unrealistic in light of the nation’s current economic condition, with the government prioritizing fiscal responsibility and long-term Economic Stability.
Requested ₦494,000 could potentially disrupt the economy.
Mohammed Idris, the Minister of Information and National Orientation, addressed the ongoing industrial action, emphasizing that the requested ₦494,000 national minimum wage from organized labour would total ₦9.5 trillion and could potentially disrupt the economy and endanger the well-being of the populace. In his statement during a press briefing in Abuja, the minister disclosed that the proposed ₦60,000 minimum wage from the federal government has been approved by the organized private sector in the tripartite committee, representing a doubling of the current minimum wage from 2019.
Idris stated that it is important for Nigerians to recognize that although the federal government aims to provide fair compensation for Nigerian employees, President Bola Ahmed Tinubu will not support any measures that could result in significant job cuts, particularly in the private sector, as the sector may struggle to meet the salary requirements set by organized labour. He explained that the well-being of millions of Nigerians is a top priority for the federal government, taking into account principles of affordability, Sustainability, and the overall economic prosperity of the nation.
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Despite numerous warnings and advice from different governments and various key individuals about the planned Strike Action, the labour union embarked on the industrial action on June 3rd. Negotiations between all parties involved until late into the night on June 2nd in an attempt to avoid the planned nationwide strike remained a stalemate, with both NLC and TUC saying responses to their demands were unsatisfactory. Following the commencement of the indefinite strike over minimum wage, Academic Staff Union of Universities (ASUU) have also joined the industrial action.
