As Nigerian workers, led by the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC), commenced a nationwide strike to drive home their demand for a living wage negotiation and reversal of the recent hike in electricity tariff, labour analysts say the N60,000 minimum wage proposed by the government is poor. They suggested a not-less-than N120,000 pay, and urged the government to be sensitive to the plight of Nigerians. CHRISTIAN APPOLOS brings excerpts.
M R Franklin Erinle, former banker and General Secretary, Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN): Government seems to be forgetting that it was its policies that skyrocketed the price of every goods and services that workers were managing their little earning to survive on. Government also seems to forget that it had promised to cushion the effect of subsidy removal with the savings from the stoppage of subsidy payment.
If the government is bragging that it has increased the minimum wage by 100 percent, the questions are; at what percentage has the naira depreciated? At what percentage did the government increase electricity tariff? At what percentage did the price of fuel go up? From around N200 to above N600. What is the dollar value of N60,000? What is the market value of N60,000? The ILO benchmark for a person’s daily survival is $2. $2 a day in Nigeria is about N3,000 and that is N90,000 for 30 days. Is the explanation the government is giving for proposing N60,000 in tandem with the reality that everyone knows? How on earth will the government’s 100 percent minimum wage increase match the reality?
In the same Nigeria where the government is defending N60,000 minimum wage proposal, a governor not under pressure has offered to pay N70,000. No, I don’t expect the government to jump from N30,000 to N400,000 but anything below N100,000 is just a waste of time.
Mr Bunmi Ogunkolade, labour and human rights analyst: With the reality of the economic situation in the country, the government is not supposed to offer anything below N100,000 for minimum wage. In fact, it should be between N100,000 and N120,000 if the government is sincere. Government on its own when it noticed the height of economic hardship, gave a cash award of N35,000. They also gave to the lower cadre earners 25 percent wage increase. Put that together, an average government worker was already earning at least N55,000. So one expected that the government’s benchmark for the new minimum wage would have started from above N55,000. But when the government started the negotiation from N42,000, you can see insincerity, lack of purpose and sense of direction.
The population hoped that the government would start from something around N80,000. So that when it gets to N100,000, the negotiation would just end at N120,000 or N130,000. But where they are now, they are not even showing any sign of seriousness or concern to the plight and suffering of workers who pay so much on transportation going to work every day.
Let’s look at it from another angle: government increased fuel from around N200 to N600 and N700. What percentage or ratio is that? Now that you want to propose minimum wage, you are now starting from N42,000, it is not fair. I am surprised that the man heading the committee on the government side, Goni Aji, a former Head of Service of the Federation, sits comfortably in that negotiation with this kind of figure the government is proposing.
The problem we have with this minimum wage negotiation is that the people making recommendations are with bigger salaries but they don’t want those at the lower ladder to enjoy increased wages. They don’t care that the economic hardship is killing some Nigerian workers. They are the ones that travel and get estacode and make much more than their salary. They are the ones that recommend for the government to pay workers a lower minimum wage, and they are ones that the government listens to.
Mr Olusoji Billyrose, immediate past National Publicity Secretary, Association of Medical Laboratory Scientists of Nigeria (AMLSN): To be honest, inasmuch as we want to praise government for the magnanimity to increase minimum wage to N60,000, a 100 percent increase, a look at the current economic reality in the country, talking about inflation and the purchasing power of an average Nigerian worker, will show that the N60,000 is just like a drop in the ocean.
The price of every goods and service in the country has tripled. And what the Nigerian worker deserves is not a minimum wage, rather a living wage. So the question we ask is; is N60,000 a decent living wage in the face of the current economic reality? What is the purchasing power of N60,000 when you take it to the market? Transportation alone in a month will consume N60,000. The truth is, the government has done well to have raised it from N30,000 to N60,000. However, considering the reality on ground which the government is well aware of, what it has proposed as minimum wage is very poor.
The savings from the subsidy removal, didn’t the government promise to better the lives of workers with part of it? Government earnings, both the federal and state, have increased by almost 40 percent and since that is the case, what else is government’s excuse to ensure that Nigerian workers are paid a living wage? Government needs to consider the plight of the masses. Increasing the purchasing power of Nigerians is by the way to the benefit of the country’s economic growth.
Edo State for example has raised the bar to N70,000. If Edo, not even an oil producing state, can do N70,000 without pressure or protest, it means that other states will be playing to the gallery to say they cannot afford to pay.
Therefore, the government has to show more magnanimity by increasing its minimum wage proposal to between N100,000 and N120,000. This, at least, will be a bit fair considering the reality on ground. This will spur the government to demand more productivity from workers. Workers themselves will be more poised to put in their best. Everyone will now know that it is either you do your job very well and be productive or you will be shown the way out. This is why the private sector is more productive than the public sector. They pay better and workers don’t joke with their work. Government, therefore, needs to think in this direction.
Mr Edmund Nwokeoma, labour and social analyst: It is a very difficult situation we have found ourselves in. It begs the issue to ask if N60,000 is appropriate for minimum wage in the face of current economic reality. If you take that N60,000 that is the minimum wage you want to pay to anybody and enter the market today, can that buy you food that will last for one week?
The truth is that N60,000 is a mirage in the face of current economic reality. Then what is the way out? The way out is not necessarily jacking it up to N1 million, but on a sustainable basis; it is for the government to begin to implement policy actions that will alleviate the sufferings of the people beyond just increasing the minimum wage.
Don’t forget that it is not only workers in the public and private sector that go to the market. There are those in the informal sector; they are Nigerians as well. They are also affected by whatever decisions are made within the polity. So, the government has a lot of work to do. I don’t envy the government at this particular time, but unfortunately, it is a decision they have to make.
Remember when the pump price of fuel was increased, the government promised to do certain things. So, it urgently needs to do a few things that will reduce the cost of transportation. Where are the CNG cars or vehicles? The withdrawal of fuel subsidy created serious challenges that the government has not even sufficiently addressed. Then the government went ahead and jacked up the electricity tariff at the same time, worsening the living condition of Nigerians.
Since then, can the government say it is providing commensurate support and buffer for all of these increases, knowing that you have not also done anything to increase the earning power of the people? The little they have, you have eroded it completely and taxes are being levied on the citizens every passing day. So, on that note, the government is being insensitive.
To that extent, the government should at least pay a minimum wage of N120,000. They told us they are saving millions since they stopped paying fuel subsidy. Government should, therefore, channel some of that money into boosting the purchasing power of people.
Inasmuch as I feel for the government, those that are at the helms throw their hat in the ring and say they have solutions to the problem. So, we hold them accountable and they must provide solutions to our problems. It is not by underpaying workers that you will solve all the problems of the country. And you cannot say workers should continue to suffer or die because you want to solve other problems. For now, the government should pay nothing less than N120,000 as minimum wage.
Mr Emenike Ubani, lecturer and a social commentator: A lot of people argue that some states are not paying the existing N30,000 minimum wage, therefore, worrying that states like that may still not be able to pay a higher figure as a new minimum wage. Such fear or worry should not be the reason the Federal Government cannot offer a living wage to Nigerian workers. Truth is, even if the minimum wage is N10,000 some governors will not still prioritise payment of workers’ wages. And for a fact, the whole talk about the wage bill is just an excuse. Governments are not incapable of paying substantial wages to workers irrespective of the volume of the wage bill.
What labour is doing is the way forward. Government has to be reminded that it exists to better the living conditions of workers. To get the government to prioritise the welfare of workers and the masses requires serious action. Labour is at least doing something about it and every reasonable Nigerian should support them. Political office holders increase their salaries every now and then. In fact, Nigerian political office holders have increased their salaries by over 800 percent. They do it quietly and many Nigerians do not know. Nigeria is ripe for a minimum wage of N100,000, even the people in government know it.
In fact, at this level of Nigeria’s existence as a country, workers deserve a better wage. Government just has to be realistic and intentional. Empowering workers in Nigeria through payment of a living wage has so much benefit for the country. But impoverished workers will only continue to exacerbate corruption, unproductiveness and backwardness for the government and the progress of the country. A minimum wage of at least N100,000 and N120,000 is most appropriate for Nigerian workers.
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