Nigeria’s Trade Union Congress (TUC) has called on the Federal Government to increase the minimum wage of workers from N30,000 to N200,000 to cushion the effects of the fuel subsidy removal.

In a meeting held at the Presidential Villa, Abuja, the union said to the government that the wage increment should be done before the end of June as part of the consequential adjustment on the cost of living allowance (COLA).

The TUC also demanded that the status quo ante of PMS pump price should be maintained while the discussion continued, adding that a representative of state governors must be a party to the communique and that all the governors must commit to implementing the new minimum wage.

Other demands of the TUC from the Federal Government include;

• Tax holiday for employees both in government and private sector that earn less than 200,000 or 500 USD monthly whichever is higher.

• PMS allowance to be introduced for those earning between N200,000 to N500,000 or 500USD to 1,200USD whichever is higher.

• The Exchange rate for retailing PMS in the country must be kept within a limit of +2% for the next ten (10) years where the fluctuation is more than 2%, the minimum wage will automatically increase at the same rate.

• Setting up of intervention fund where the government will be paying N10 per liter on all locally consumed PMS. The primary purpose of this fund is to solve perennial and protracted national issues in education, health, and housing. A governance structure that will include labor, civil society, and government will be put in place to manage the implementation.

• The president should direct whoever will be the labor minister to immediately constitute the National Labour Advisory Council (NLAC). This platform will be used by the government, Labor, and employer to discuss issues and policies of the government that may affect workers and all other mandates as specified in the law.

• State Governments should immediately set up a subsidized transportation system to reduce the pressure on workers and students. The framework around this will be worked out.

The Trade Union Congress (TUC) demand is coming after the union had suspended the planned national strike over fuel subsidy removal.

Investors King understands that the Federal Government, the TUC, and the Nigeria Labour Congress (NLC) would establish a joint committee to review the proposal for any wage increase or award and establish a framework and timeline for implementation.

Edo State Governor, Mr. Godwin Obaseki, has issued a warning about a potential economic crisis in Nigeria.

Speaking during the 2023 May Day celebration in Benin City, Governor Obaseki said that the Federal Government may not be able to pay workers’ salaries beyond June 2023 without resorting to measures such as massively printing money or removing fuel subsidy.

The Governor, who addressed the theme of the celebration, “Workers’ rights and socio-economic justice,” urged workers in the country to hold the government accountable for its policies and programs.

He also charged workers to champion discussions on subsidy removal, insisting that the burden and pain of such measures must not be carried by workers alone.

Governor Obaseki reaffirmed his commitment to the welfare of workers in Edo State, noting that they are currently the best-paid workers in Nigeria.

He promised to match the federal government’s minimum wage and hand over a cheque to state workers the day the federal government is able to pay its new minimum wage.

The Governor added that Edo State currently does not owe arrears of promotion, as he has approved the promotion of all staff for 2022.

He acknowledged the contributions of workers to the growth and development of the state, hailing them as the unsung heroes of society and the engine that powers the economy.

Governor Obaseki’s warning about a looming economic crisis in Nigeria comes amidst growing concerns about the country’s economic outlook. With declining oil prices, inflation, and rising unemployment, Nigeria’s economic prospects have been uncertain in recent times.

However, the Governor’s commitment to prioritizing workers’ welfare and implementing reforms could help mitigate the impact of any economic downturn.

The Nigerian government has announced that it will begin payment of the planned increase in civil servants’ pay by the end of April 2023.

The fresh pay increase, tagged consequential allowance, will lead to a 40% rise in the current pay of government workers from level 1 to level 17.

Officials of the Federal Government stated that the increase is effective from January 2023, and the three months arrears of January, February, and March will be paid at a later date.

This increase is expected to cushion the effects of rising inflation, rising cost of living, hikes in transportation fare, housing, and electricity tariffs, which have contributed to the country’s highest rate of inflation since September 2005.

The pay rise was included in the 2023 budget and was approved by the Federal Government as a peculiar allowance for civil servants in view of the current economic reality.

However, leaders of the organized labor have described the proposed pay rise as a meager allowance that would not be equivalent to a 40% increase in workers’ salaries. They are urging the government to consider an increment of other allowances such as rent and transportation.

This pay increase comes at a time when Nigeria is facing a challenging economic situation due to rising inflation, insecurity, and other socio-economic issues.

The government’s decision to increase civil servants’ pay is a step in the right direction and will go a long way in improving the welfare of government workers.