Petrol Price Has Rendered N70, 000 Minimum Wage Useless — NLC

The Nigeria Labour Congress (NLC) expressed concern on Thursday about the impact of the recent petrol price hike, stating that it has effectively nullified the benefits of the proposed N70,000 minimum wage. NLC President, Joe Ajaero, made this statement during the opening of a two-day workshop on “Minimum Wage Implementation” in Lagos. The event was focused on strategies for implementing the 2024 National Minimum Wage Act.

Ajaero revealed that the organised labour felt deceived by President Bola Tinubu, who they claim had promised the N70,000 minimum wage to prevent a further increase in petrol prices. He urged the government to address the deepening issues of hunger, poverty, and frustration among Nigerians before the situation worsens.

Reflecting on the discussions with President Tinubu prior to agreeing on the new minimum wage, Ajaero explained how organised labour was pressured into accepting the N70,000 wage. “We were betrayed by Mr President,” he stated, recounting a meeting where Tinubu suggested the possibility of offering N250,000 as minimum wage if the labour union allowed a further petrol price increase.

Ajaero explained that during negotiations, the NLC rejected the proposed salary increases, stating that higher wages would be insufficient if the cost of living, particularly fuel prices, continued to rise. “Even N250,000 may not be enough to buy fuel if prices keep going up,” he said.

The NLC president also mentioned that Tinubu had offered to fund a trip for labour leaders to visit West African countries where fuel prices are significantly higher, but the union declined, saying Nigerians would perceive the trip as bribery.

Ajaero further highlighted the challenges faced by labour during the negotiation process, including resistance from private sector employers who were unwilling to compromise on wage increases. He stressed that some private sector employers, along with state and federal governments, opposed the labour union’s demands, leading to difficult negotiations

Ajaero reiterated that despite accepting the N70,000 minimum wage, the rising cost of fuel has rendered it inadequate, leaving workers struggling to cope with the economic challenges.