Muthomi Ireri
Public sector workers in Nigeria will see their minimum wage double after the government reached an agreement with labor unions on Thursday. These unions had been threatening further strikes due to the rising cost of living.
The new minimum monthly wage is set at 70,000 naira ($44), which is significantly lower than the unions’ demand. The unions initially sought an increase to nearly 500,000 naira. Nigerian Labour Congress President Joe Ajaero expressed “mixed feelings” about the new wage, citing the country’s economic difficulties after meeting with President Bola Tinubu in Abuja.
The pay increase will not be implemented immediately, as federal lawmakers still need to pass a new law to approve it.
Since taking office in May, Tinubu has implemented policies such as removing fuel subsidies and unifying the country’s multiple exchange rates. These actions have led to a devaluation of the naira against the dollar, causing gasoline prices to more than double and inflation to rise, reaching 34.1% last month, the highest in nearly three decades.
The unions’ demand for an increase from the current minimum wage of 30,000 naira was rejected by the government, leading to a strike that paralyzed the nation. Despite the new minimum wage being well below the unions’ initial request, many Nigerian governors have stated that their states cannot afford it. The new law, once passed, would require them to adopt the pay increase.
Despite being one of Africa’s top crude oil producers, Nigeria remains one of the world’s poorest countries. Chronic corruption means that the lifestyles of public officials are far removed from those of the general population. Lecturers and medical professionals frequently strike over low wages, while politicians continue to receive large salaries and regular monetary compensation, even for unofficial functions.
Last year, President Tinubu approved millions of dollars in spending for sport utility vehicles, benefiting even his wife, whose office is not constitutionally recognized.
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