Can Nigeria afford living wages?

As Nigerians countdown to the review of the national minimum wage by April this year, organized labour notes on-going talks should be viewed as a collective effort in the bid to achieve living wages. Peter Esele, Former President of the Trade Union Congress, shared insights on the feasibility of achieving improved wages amid the rising cost of living crisis in the country. Esele emphasized the importance of considering data-driven approaches and involving the informal sector in wage discussions. The assessment of the current wage talks has been slow, with Esele highlighting that government should have anticipated the impact of removing subsidies on the cost of living. He reflected on past negotiations, where the focus was not just on the minimum wage amount but also on the purchasing power and the ability to cover daily expenses. With demands for a minimum wage as high as $200,000, Esele stressed the necessity of data-driven negotiations to ensure that both government and labour can reach a sustainable agreement. He urged for the inclusion of the informal sector, highlighting that it constitutes a significant portion of the workforce in Nigeria. The conversation delved into the accountability of government in managing revenue and cutting wastages. Esele called for a reduction in the cost of governance and emphasized the need for revenue optimization to support enhanced wages. Additionally, he advised organised labour to hold political office holders accountable and address inefficiencies that drain resources. Regarding palliatives to mitigate the impact of economic reforms, Esele advocated for shifting the narrative from 'palliatives' to 'government intervention.' He underscored the necessity of subsidizing transportation costs, which significantly burden Nigerian workers, as a primary intervention to relieve financial strain. As discussions progress towards the April review, Esele emphasized the importance of approaching negotiations with a focus on sustainability and affordability for both government and the workforce. By considering data, involving all sectors of employment, and prioritizing interventions over temporary solutions, stakeholders can work towards achieving living wages in Nigeria.