Tensions Rise as Labour Demands ₦250,000 Minimum Wage—Why It Matters.
The labour unions in Nigeria are gradually putting the heat on Federal Government demanding minimum wage of 250,000 naira over the escalating inflation, decreasing purchasing power and declining living conditions. This has spawned a raging great national-debat where the question is can the economy permit this and what will it result should this not be the case.
The current minimum wage is not a living wage. It cannot feed a Nigerian worker, let alone house or clothe them.— Joe Ajaero, President of the Nigeria Labour Congress (NLC) .Source: Vanguard
Current minimum wage of 30,000 naira has been released since 2019 in most states in Nigeria.
The inflation has since almost tripled making millions of people fall further into poverty.
The unions are referring to the offer of the government of 60000 as an insult and disconnected to reality.
The thing is that: living expenses have boomed, the base food products are two or three times more expensive, transportation, rent, and healthcare are too expensive to afford them now by a worker.
Labour states that the minimum wage should not be less than 250,000 naira since it does not represent financial struggles and the principle of equitable compensation.
But The heavier wage bill risks inflating the recurrent expenditure of Nigeria, which will result in:
Reliability of additional borrowing,Potential reduction of the number of state employees,Increment to already weak budgets at the state level.
On the one hand, the lack of actions can cause:
-Nationwide strikes.
-Additional loss of confidence between the state and the people.
-Rising cases of crime and turbulence due to hopelessness to live.
Salary is not the only thing involved in this. It’s about:
-Social equity: Are workers supposed to be the targets of the economic meltdown?
-Economic sustainability: Is the government able to pay the cost without deteriorating the debt?
-Productivity and morale: Low wages meet low productivity = slow growth of the country.
But in case the government yields-
There is a potential increase in tax rate that will be used in financing the new wage bill.
Others in the private sector will be unable to keep pace and they will have to face layoff or unofficial mode of employment.
But if the labour lose:
-Millions of people may not escape poor living conditions.
-Social tension may spread, and the protests or mass emigration may rise.
Promotion of the 250,000 naira minimum wage is not only a state of workers, but a national economic challenge. Is it possible that Nigeria will be able to be fair and viable? Are compassion and reforms compatible?
Though as of the time of publishing this post,goverment and labour union in Nigeria has agreed on 70,000 Naira minimum wage,but its still not enough considering the cost of living,Rent has increased ,cost of living is nothing to right home about.
There's still need for government to review the minimum wage upward to 250,000 Naira which is still within the poverty level according to a government official "Any nigerian earning less than 250,000 Naira a month,is living below poverty level"
What do you think of the new development?
with the current living condition in nigeria,is 250,000 wage okay for an average nigerian?
lets get your contribution...