Nigeria: Government agrees on new wage deal

On Thursday, Nigeria’s main labor unions settled on a new minimum wage of 70,000 naira per month after discussions with the government, resolving months of deadlock and averting potential strikes. Africa’s most populous country is enduring the most severe cost of living crisis in a generation, raising concerns about protests similar to those in Kenya.

The Nigerian Labour Congress and the Trade Union Congress, the country’s two largest union federations, have contended that rising prices and a weakening currency—resulting from President Bola Tinubu’s reforms—are severely impacting workers.

Skyrocketing inflation has diminished incomes, making it difficult for millions of Nigerians to cover their basic needs.

Minister of Information Mohammed Idris, alongside union leaders, announced the new wage, which is more than double the 30,000 naira per month agreed upon in 2019.

“We are accepting the new 70,000 naira minimum wage with mixed feelings due to the current state of the economy. We must move forward despite the challenges, or the negotiations will drag on,” NLC President Joe Ajaero told reporters.

He mentioned that the next minimum wage review would occur in three years instead of the usual five. The unions had suspended a strike in early June to allow for negotiations but cautioned that failure to reach an agreement could lead to renewed strike action.

Idris announced that President Tinubu would promptly send the proposal, which includes a provision for a three-year wage review, to parliament for legislative approval. Tinubu has stated he will not reverse unpopular reforms, such as increases in electricity and gasoline prices. On Wednesday, Tinubu requested lawmakers to authorize an additional $4 billion in spending to cover budget shortfalls for the year, with about half allocated to “further recurrent expenditure requirements.”

The government intends to invest in infrastructure and renewable energy, including compressed natural gas plants and buses, to help reduce transportation costs, Idris added.

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