Nigeria Labour Congress Rejects Government's 35% Pay Rise for Civil Servants

The president of the Nigeria Labour Congress (NLC), Joe Ajaero, has rejected the federal government's announcement of a 25-35% pay rise for civil servants, stating that organized labour had agreed on a livable wage of N615,000. Ajaero described the government's announcement as 'mischievous' since there was no wage increase being announced.

According to Ajaero, the last minimum wage of N30,000 expired on April 18, and discussions on a new minimum wage were supposed to have been concluded. He provided a detailed breakdown of the N615,000 livable wage, which includes costs for housing, electricity, utilities, food, medical, clothing, education, sanitation, and transportation. "The living wage should be sufficient to keep a worker alive and not lead to poverty or poor health," Ajaero emphasized.

The government had previously set up a 37-member tripartite committee on the minimum wage, and organized labor had submitted a demand of N615,000 as the new minimum wage, urging the government to announce it on Workers' Day. However, the government instead approved a 25-35% pay rise for civil servants on the remaining six Consolidated Salary Structures, as well as a 20-28% increase in pension for pensioners under the Defined Benefits Scheme, effective from January 1, 2024.

Why this matters: The rejection of the government's pay rise by the NLC highlights the ongoing struggle for fair wages and livable income for workers in Nigeria. The outcome of this dispute could have significant implications for the country's labor force and economy.

Festus Osifo, the president of the Trade Union Congress (TUC), argued that increasing the minimum wage for civil servants will not worsen inflation, as the state governments have seen a tripling of revenue allocation since May 2023, giving them more resources to pay workers. Ajaero said workers and the masses have been going through tough and agonizing experiences due to the government's policies, such as the hike in petrol prices, devaluation of the naira, and electricity tariff hike. The labour leaders have warned the government about the consequences of these policies and have insisted on getting a living wage for workers.

Key Takeaways

• NLC president rejects FG's 25-35% pay rise, demands livable wage of N615,000.
• Last minimum wage of N30,000 expired on April 18, new wage discussions ongoing.
• Organized labor submitted N615,000 demand, but FG approved 25-35% pay rise instead.
• TUC argues increasing minimum wage won't worsen inflation due to higher state revenue.
• Labor leaders warn of consequences of FG's policies, insist on living wage for workers.