Labour Union proposes N350,000 minimum wage, cites inflation, economic hardship

The National Association of Academic Technologists (NAAT) has thrown its hat in the ring for the ongoing national minimum wage debate, proposing a staggering N350,000 monthly wage for Nigerian workers.

This proposal comes as the previously agreed-upon minimum wage of N30,000 nears its expiration date at the end of March 2024. The Tripartite Committee on the National Minimum Wage, comprised of government representatives, labor unions, and employers, is currently reconvening to negotiate a new minimum wage.

In his welcome address at the 5th National Delegate Conference, NDC, in University of Abuja on Wednesday, the President of NAAT, Comrade Ibeji Nwokoma, said what workers need should be a living wage that should take care of the immediate needs.

Nwokoma based his proposal on the current economic realities in Nigeria, including high inflation and the removal of fuel subsidies. He argued that the present N30,000 minimum wage is insufficient to meet the basic needs of Nigerian workers and their families.

While differentiating between minimum wage and living wage, Comrade Nwokoma said, “Nigeria must transcend the concept of a mere minimum wage to embrace the notion of a living wage, commensurate with the rising cost of living.

“Comparatively, other African countries have made strides in this regard, recognizing the fundamental right of workers to earn wages that afford them dignity and a standard of living.

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“According to the Wisevoter report, Seychelles boasts the highest estimated gross monthly wage in Africa, standing at $465.4, while the South Africa’s monthly wage stands at $240. The naira equivalent of the wages of these countries would clearly depict the sorry state of the Nigerian worker.

“On this note, I proposed a minimum of Three Hundred of Fifty Thousand Naira (N350, 000) for the Nigeria worker as monthly wage.”

Inflation and Hardship Drive Demands

Nwokoma pointed to Nigeria’s current inflation rate, which sits at a staggering 31.70% as of February 2024, as a key factor necessitating a significant increase in the minimum wage. High inflation erodes the purchasing power of wages, making it difficult for workers to afford basic necessities.

Furthermore, the removal of fuel subsidies, a government program that artificially lowered fuel prices, has further impacted the cost of living. Transportation and other essential goods and services tied to fuel prices have become more expensive, placing additional strain on household budgets.

NAAT’s Proposal Compared to Others

NAAT’s proposal is significantly higher than the current minimum wage and even exceeds other proposals submitted by different labor unions. The Nigeria Labour Congress (NLC) previously proposed N794,000 per worker, while the Trade Union Congress (TUC) suggested N447,000 per month.

Negotiations and the Road Ahead

The Tripartite Committee is expected to deliberate on all proposals, including NAAT’s, before reaching a consensus on a new minimum wage. The committee faces a significant challenge in balancing the needs of workers with the capacity of the government and private sector to pay the increased wages.

NAAT’s proposal, while reflecting the economic hardships faced by Nigerian workers, is likely to be met with resistance due to its high cost. The final decision on the minimum wage will likely involve compromise between all stakeholders.

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