NLC insists petrol price cut, fresh wages

Business Pointers

The Nigeria Labour Congress (NLC) has insisted that its two-week ultimatum to the Federal Government over rising petrol prices and fresh minimum wage negotiations remains in force, warning that Nigerian workers continue to struggle despite the implementation of the ₦70,000 national minimum wage.

NLC President, Joe Ajaero, said workers’ purchasing power had continued to deteriorate amid rising living costs, arguing that the current wage structure had failed to provide meaningful relief from the increasing cost of food, transportation and other essential needs.

Ajaero spoke on Monday in Abuja during a retreat involving the National Salaries, Incomes and Wages Commission (NSIWC), where he urged the government to introduce proactive measures to ease workers’ hardship rather than wait for organised labour to embark on strikes or protests.

The labour leader maintained that the ultimatum remained valid, despite ongoing correspondence between the NLC and the government over its demands.

He said the retreat was not the appropriate forum to negotiate the ultimatum, adding that the union would continue to pursue the matter through the established channels.

“I’ve not come here to discuss my ultimatum. My ultimatum stands,” Ajaero said.

He called on government officials to recognise the economic difficulties facing workers and take decisive steps to address their concerns before industrial tensions escalate.

“Nigerian workers are really suffering. And if you do something, history and posterity will remember all of us for it,” he added.

The NLC had issued a two-week ultimatum demanding a reduction in petrol prices and the commencement of fresh negotiations on the national minimum wage, citing the erosion of workers’ earnings by prevailing economic conditions.

Ajaero argued that the combination of higher petrol prices, rising transportation costs and expensive food had significantly weakened the purchasing power of Nigerian workers.

He said the challenge was no longer simply about negotiating higher salaries but ensuring that workers could afford basic necessities from their earnings.

“The point we are making is not strike. The point we are making is that whether you enter bus or you buy fuel, you will not be able to eat,” he said.

The NLC president urged the Federal Government to adopt a more proactive approach to workers’ welfare, noting that governments in other countries often introduce relief measures before labour disputes escalate into industrial action.

According to him, waiting for unions to mobilise workers onto the streets before responding to their demands was not the most effective way to manage industrial relations.

He maintained that timely government intervention and meaningful negotiations would help prevent avoidable disputes and protect workers from further economic hardship.

The labour leader also challenged claims that the 2024 minimum wage agreement resulted in salary increases of about 133 per cent for federal public servants.

According to Ajaero, the adjustment implemented after the negotiations involved an additional ₦40,000 for federal workers, which he argued did not translate into the percentage increase being cited.

He said the structure of the adjustment had failed to address workers’ concerns adequately, particularly as inflation and transportation costs continued to erode their earnings.

“₦40,000 does not translate to 100 per cent or 133 per cent. And the consequences are what we are facing now,” he said.

The disagreement highlights the continuing debate over the practical impact of the 2024 minimum wage agreement and whether subsequent salary adjustments have kept pace with the cost of living.

Although the statutory minimum wage was increased to ₦70,000 in 2024, the NLC maintains that prevailing economic conditions have made fresh negotiations necessary.

Ajaero also expressed concern over unresolved industrial disputes in the public sector, citing an 84-day strike by health sector workers that was suspended following the intervention of organised labour.

He said the issues that prompted the strike had yet to be adequately addressed more than a year after the intervention.

The NLC president further disclosed that workers under the National Public Service Negotiating Council had considered industrial action but were persuaded by labour leaders to suspend their plans.

He rejected suggestions that organised labour was being influenced by politicians, insisting that the union’s demands were driven by workers’ economic circumstances.

“No politician can use us. That’s the greatest insult, to tell me at this age and time, you know, to say a politician is using you when you ask for increase of workers’ salaries,” he said.

Ajaero appealed to government officials and the leadership of the wages commission to take workers’ grievances seriously and pursue solutions capable of preventing further deterioration in industrial relations.

Meanwhile, the Secretary to the Government of the Federation (SGF), George Akume, called for a balance between workers’ legitimate demands for improved remuneration and the government’s financial capacity.

Akume, represented by the Permanent Secretary, General Services Office, in the Office of the SGF, Dr Abubakar Kana, said wage decisions must reflect prevailing economic realities while supporting industrial harmony and national development.

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“The commission must continually balance the legitimate expectations of workers with the fiscal realities of government and broader imperatives of national economic development,” he said.

The SGF noted that ongoing economic reforms, rising public expectations and the approaching 2027 general elections had increased the urgency of establishing a fair and sustainable wage system.

He urged the commission to strengthen its capacity to anticipate emerging wage challenges and provide recommendations based on credible economic data and consultations with organised labour, employers and other stakeholders.

Akume identified policy coordination, digital transformation and effective implementation of institutional reforms as key priorities for the commission.

He also warned against avoidable industrial disputes, stressing that dialogue and cooperation were essential to maintaining economic stability.

“A credible and inclusive approach towards governance is indispensable to building trust, preventing avoidable industrial disputes like we’re about to have now, and promoting a stable environment for national development,” he said.

Earlier, the Chairman and Chief Executive Officer of the National Salaries, Incomes and Wages Commission, Junaidu Bindawa, said Nigeria’s economic conditions required a more strategic approach to wage administration.

Bindawa noted that inflationary pressures, changing labour expectations and demands for greater public-sector efficiency had increased the importance of sustainable salary policies.

He said wage administration directly affected workers’ welfare, public expenditure, industrial relations, productivity and the overall performance of the public service.

“Our work must reflect a careful balance between the legitimate expectation of workers, the imperatives of productivity and social justice, and the fiscal capacity of government,” he said.

The chairman explained that the retreat, themed Vision, Strategy and Institutional Renewal, was designed to reposition the commission to respond more effectively to emerging wage and compensation challenges.

He identified research, job evaluation, compensation management, public finance, industrial harmony and institutional accountability as priority areas.

Bindawa also called for stronger collaboration between the commission’s board and management, improved internal systems and the adoption of digital tools to support evidence-based decisions.

He said the retreat should produce a practical roadmap with clear priorities and measurable outcomes.

In her welcome remarks, the commission’s Secretary, Olajumoke Okoya-Thomas, called for a shift from reactive wage reviews to a permanent system driven by credible data.

She recalled that previous wage review exercises were conducted through temporary commissions, including the Morgan Commission of 1964, the Adebo Commission of 1971 and the Udoji Commission of 1974.

According to her, the establishment of the NSIWC in 1993 provided a permanent institutional framework for advising the government on salaries, allowances and national incomes policy.

“We exist so that wage decisions rest on evidence, not emergencies,” she said.

Okoya-Thomas acknowledged that the 2024 minimum wage more than doubled the previous statutory minimum but stressed that future wage decisions must remain fair, evidence-based and sustainable.

She said the retreat would examine data reliability, fair remuneration, social dialogue, institutional capacity and governance.

The commission also intends to develop an action plan aligned with the Renewed Hope Agenda, Nigeria Agenda 2050 and the Medium-Term National Development Plan for 2027 to 2030.

According to her, the plan would include specific responsibilities, implementation timelines and performance indicators, with the commission’s monitoring and evaluation division responsible for tracking progress.

Also speaking, the Head of the Civil Service of the Federation, Abel Enitan, said improved workers’ welfare, institutional efficiency and the modernisation of government operations were essential to national development.

Enitan described salary administration as a matter of national interest, noting that the civil service and the wages commission had complementary responsibilities in improving working conditions and public-sector performance.

He said the government was prioritising capacity development and the digitisation of civil service operations, with the aim of establishing a fully paperless working environment.

The Head of Service also linked public-service reforms to President Bola Tinubu’s ambition to build a $1 trillion economy by 2030, arguing that achieving the target would require a productive and adequately equipped workforce.

“It is achievable. Just that the workforce must be mobilised behind that agenda,” he said.

He identified efficiency, productivity, integrity and citizen-centred service delivery as essential attributes of a modern civil service.

Enitan expressed confidence that the retreat would produce recommendations to strengthen wage administration, improve workers’ welfare and support broader public-service reforms.

With the NLC maintaining its ultimatum and the Federal Government emphasising fiscal constraints, the outcome of further engagements between both sides will be crucial to determining whether the dispute is resolved through negotiations or escalates into industrial action.

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