At this year’s annual Vanguard Economic Discourse, the President of the Nigeria Labour Congress (NLC), Mr. Joe Ajaero, and the Managing Director of Financial Derivatives Company, Mr. Bismarck Rewane, engaged in a heated debate over the organized labour’s demand for a reduced minimum wage of N497,000.
While Mr. Rewane argued that such a high minimum wage was unfeasible, Ajaero maintained that the demand was justified given Nigeria’s current socio-economic conditions. This discussion follows the Presidency’s assertion that the N497,000 demand is unrealistic and urged labour to be more practical in its negotiations.
In his opening remarks, Ajaero highlighted the soaring prices of essential goods and services, using examples such as a bag of rice costing N84,000 and monthly gas refills costing up to N30,000. He emphasized that the cost of living index should guide wage decisions, referencing international standards like the United Nations’ provision that no human should live on less than $2 a day.
Ajaero argued, “When you increase the purchasing power of workers, the economy will grow. Even if you give us N615,000 for the next five years, it will be meaningless because inflation is already here with us.”
Mr. Rewane countered, recalling past wage negotiations and emphasizing the need for a balanced approach. He noted, “In 2019, we managed to move the minimum wage from N18,000 to N30,000 without causing inflation. Any new wage should consider the private sector’s ability to pay.”
The Presidency, through Special Adviser Mr. Bayo Onanuga, stated that the N497,000 wage demand was not sustainable given the bloated workforce and financial constraints at various government levels. Onanuga suggested that instead of focusing solely on wage increases, efforts should be made to reduce living costs and improve workers’ overall quality of life.
