The Nigeria Labour Congress (NLC) Lagos Council has criticized the newly approved national minimum wage of N70,000, deeming it inadequate for workers in Lagos given the city’s high cost of living. The council’s chairman, Funmi Sessi, expressed mixed feelings about the wage increase, highlighting that the Lagos State Governor, Babajide Sanwo-Olu, must consider a higher minimum wage for Lagos workers.

Governors’ Influence and Tinubu’s Decision

The NLC accused the Governors’ Forum of undermining President Bola Tinubu’s efforts to set a higher minimum wage. According to Sessi, the governors’ insistence on a N50,000 minimum wage during negotiations resulted in the final approval of N70,000 instead of the initially proposed N100,000. 

President Tinubu approved the N70,000 wage following a meeting with organized labor leaders in Abuja. The National Assembly is expected to receive an Executive Bill for the new wage on July 23, which will replace the outdated N30,000 minimum wage. Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy, confirmed the bill’s imminent submission to lawmakers.

Reactions and Economic Concerns

Sessi expressed disappointment that the new minimum wage falls short of expectations, although it is an improvement over the proposed N62,000. She urged the Lagos State government to negotiate a higher wage, reflecting the unique economic challenges in Lagos.

“We must consider the cost of transportation, housing, and other living expenses unique to Lagos,” Sessi said. “For instance, a two-bedroom flat in Lagos costs at least N1 million annually, and even a one-bedroom apartment can go for N500,000. The approved N70,000 wage is unsustainable for Lagos workers.”

Sessi also called on the government to monitor market forces closely, as rising costs of goods and services could negate the benefits of the new wage. “We need to ensure that the increase in wages does not lead to further inflation,” she added.

Additional Benefits for Retirees

The new wage agreement includes provisions for retirees, who will see an increase in their monthly pensions. Retirees from level 1 to 16 will receive a 20% increase, while those from level 17 and above will get a 28% boost.

Despite these improvements, the NLC insists that more must be done to meet workers’ needs in Lagos. “We will continue to negotiate and dialogue with the government until we achieve what we believe is fair and sustainable,” Sessi concluded.

Source: Vanguard