IT IS now clear that only a robust and indefinite general strike will win the decent minimum wage we so desperately need. The federal government and the private sector are resolved on N62,000, the governors are claiming they cannot even afford that amount. The NLC are currently sticking to N250,000, but delays whilst its leaders attend the ILO annual conference in Geneva are spreading doubt and uncertainty. We need resolute leadership and a clear declaration that the strike will now continue until our victory is achieved.
The NLC/TUC originally arrived at a monthly minimum wage demand of N615,000 on the basis of the basic needs required for a worker’s family of six people to survive. These estimated monthly costs included housing/accommodation costs (N40,000), electricity/power (N20,000), utility/water (N10,000), kerosene/Gas (N35,000), food (N9,000/day or (N270,000), medical (N50,000), clothing (N20,000), education (N50,000), sanitation (N10,000) and transportation (N110,000).
It is clear that governments and the private sector can afford a decent minimum wage. They are not telling the truth when they claim that they cannot afford to pay more.
The Nigerian economy is growing at a reasonable level. According to the World Bank, “Between 2000 and 2014, Nigeria’s economy experienced broad-based and sustained growth of over 7% annually on average”. Since then, growth has been lower, but over the last three years it has still averaged 3.4%. This would mean that the economy would still double in size every two decades. The governor of Lagos claims that the local economy has grown by 50% over the last five years and that this is a third of the national GDP.
The value of the Nigerian Stock Exchange is now at record levels, about twice the level of a year ago. Some international firms may be leaving Nigeria, but this is due to the uncertainties from increased insecurity and the huge devaluation of the naira (which reduces the value of their repatriated profits and increases the costs of their imports).
International companies are not leaving due to the high cost of labour. Wages are relatively low in Nigeria. The minimum wage in South Africa is now N250,000 and the lowest figure for our neighbouring countries is N100,000 (Niger).
In 2019 the federal budget was ₦8.92 trillion this year it is ₦27.5 trillion or well over three times as much. A case study on Katsina State demonstrates that it could easily afford to pay a minimum wage of at least N150,000 this year. Many other states will have a higher IGR (local income) than Katsina and the oil producing states have higher FAAC income. Like Katsina, many states also brought forward unspent funds from last year (in Katsina’s case N30 billion). So, all Nigerian states can easily afford to pay a minimum wage of well in excess of the current proposal to the President of only N62,000 from April 2024.
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We are poor people living in a rich nation – we have to use our collective power to force a change. Sitting for months in the Minimum Wage Committee did not produce a decent minimum wage, it was only the threat of a general strike that brought some movement. A robust indefinite strike is the only way for us to achieve a decent minimum wage.
The UN defines extreme poverty as a person surviving on less than $2.15 per day or $64.5 per month per person. A typical working-class family of six (father, mother and four children) would thus require $387 or N580,500 per month at an exchange rate of $1/N1,500. Yet, the NLC/TUC reduced their initial demand of N615,000 monthly minimum wage to only N250,000.
We desperately need the suspended general strike to be re-started as soon as possible. It is clear that Tinubu is not going to deliver on the expectations of the NLC/TUC for a minimum wage of N250,000. We need the strike to start again before Tinubu sends his proposed law to the National Assembly. Waiting will only demoralise workers and further reduce the momentum of the campaign.
The NLC/TUC originally arrived at a monthly minimum wage demand of N615,000 on the basis of the basic needs required for a worker’s family of six people to survive. These estimated monthly costs included housing/accommodation costs (N40,000), electricity/power (N20,000), utility/water (N10,000), kerosene/Gas (N35,000), food (N9,000/day or (N270,000), medical (N50,000), clothing (N20,000), education (N50,000), sanitation (N10,000) and transportation (N110,000).
Thus, the NLC/TUC’s current demand of only N250,000 would not lift many workers out of poverty. We would still need substantial increases each year for a few years for this to be achieved.
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Despite the indecisiveness of the trade union leaders it is still only the trade unions that have the collective power to achieve this. Some people claim that civil society are an alternative to the trade unions, but on Democracy Day this year, they were only able to organise protests in Ikeja, Kaduna, Kano and Osogbo, with token protests in Abuja, Edo and Ibadan. When the trade unions are serious, they can organise protests in all state capitals on the same day. They last demonstrated this ability earlier this year on 26th February.
We need unity between the trade unions, the informal sector and civil society. But it is the trade unions that have to be the core of this coalition because they have the reach and organisational ability. That is why working in trade union branches and putting pressure on or supporting the trade union leaders is so important.
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Unfortunately, the leaderships of the NLC and the TUC spent Democracy Day in Geneva, Switzerland attending the International Labour Organisation (ILO) annual conference. This was mistaken because the fight for a decent minimum wage was at such a critical stage, but also because the ILO promotes the wrong approach to trade unionism.
The ILO argues that the trade unions, governments and the private sector need to work in partnership. This is the dominant view within the trade union leadership and explains why they put so much emphasis on negotiation. They almost invariably suspend strikes as long as the government is prepared to sit down and hold meetings with them. The idea is that we should all be able to agree an approach that is mutually beneficial for the development of the nation.
We need workers and trade unionists to demand immediate action from their leaders at branch, state and national levels. We need to flood the trade union leaders with letters and motions demanding immediate action until the NLC/TUC demands are met in full.
Unfortunately, this approach does not reflect our reality. The governments are not prepared to negotiate in good faith. They are thieves and their priority is looting and self-enrichment. Even when they sign agreements with the trade unions, they are rarely implemented as agreed.
The NLC recently sent ultimatums to the governors of five states who had yet to fully implement the N30,000 minimum wage after over five years. The first paragraph of the agreement the NLC signed with the federal government in October last year on a monthly allowance for federal workers was never implemented properly.
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The only good thing about the ILO is that it does support annual increases in the minimum wage and they say that this happens in most countries of the world. Workers in South Africa, Ghana and Cameroon all benefit from annual increases in the level of their minimum wages. This is a vital development that we have to at least work towards this year. We will never be able to maintain the value of the minimum wage if it is only increased once every five years or so.
We desperately need the suspended general strike to be re-started as soon as possible. It is clear that Tinubu is not going to deliver on the expectations of the NLC/TUC for a minimum wage of N250,000. We need the strike to start again before Tinubu sends his proposed law to the National Assembly. Waiting will only demoralise workers and further reduce the momentum of the campaign.
We need workers and trade unionists to demand immediate action from their leaders at branch, state and national levels. We need to flood the trade union leaders with letters and motions demanding immediate action until the NLC/TUC demands are met in full.
Comrade Batubo, a member of Socialist Labour, writes from Abuja. He can be contacted on 0916 693 3998
