Nigerian Workers Celebrate Labour Day Amid Economic Challenges and Demands for Higher Wages

On May 1, 2024, Nigerian workers celebrated International Labour Day amid a backdrop of economic difficulties, including petrol scarcity, high inflation, and demands for a new minimum wage of N615,000 under President Bola Tinubu's administration. Across major cities, Nigerians faced long queues at gas stations due to an ongoing fuel shortage that has led to increased transportation costs and difficulties for businesses relying on generators because of Nigeria's erratic power supply.

Authorities blamed the petrol shortage on distribution disruptions due to logistical challenges. As one of Africa's top crude oil producers, Nigeria frequently experiences gasoline shortages, mostly as a result of strikes and supply disruptions. The current fuel crisis has caused the price of Premium Motor Spirit (PMS) to rise from an average of N580-N630 to N1,000 per liter at many filling stations nationwide, with black market prices reaching N1,500-N1,800.

Amid these economic woes, Nigerian workers demanded a new minimum wage of N615,000, highlighting the need for the government to address the country's economic situation. Atiku Abubakar, the 2023 Presidential candidate of the Peoples Democratic Party, denounced the Tinubu administration for disregarding workers' rights and failing to address the dire situation of Nigerian workers. He accused the government of unilaterally removing the petrol subsidy without consultation, leading to increased tariffs and hardships.

Why this matters: The economic challenges faced by Nigerian workers on Labour Day underscore the pressing need for the government to implement reforms and policies that address the country's fuel crisis, inflation, and wage issues. The demands for a higher minimum wage reflect the growing frustration among workers struggling with the rising cost of living and economic hardships.

President Tinubu, represented by his Chief of Staff Femi Gbajabiamila, stated that his administration was executing significant reforms to reposition the country for the overall benefit of citizens. These reforms include diversifying the economy, attracting investments in the oil and gas sector, implementing tax reforms, and streamlining contracting processes. The government has also raised salaries for federal employees by 25% to 35%, backdated to January, with the lowest-paid worker now earning 450,000 naira annually.

Despite these assurances, the Nigeria Labour Congress has listed seven demands from the Federal Government, including the creation of state and local government police to tackle insecurity. The Labour Party called on the government to introduce a new minimum wage swiftly, criticizing the current N30,000 minimum wage as insufficient due to rising inflation. "The significant devaluation of the naira since the current administration took office has further eroded the purchasing power of workers' wages," the party stated.

Key Takeaways

• Nigerian workers demand new minimum wage of N615,000 amid economic woes.
• Fuel shortage leads to price hike from N580-N630 to N1,000-N1,800 per liter.
• Tinubu admin claims reforms to diversify economy, attract oil investments.
• Labour union lists 7 demands, including new minimum wage and local police.
• Opposition criticizes Tinubu for unilaterally removing fuel subsidy.