NLC Blames Bad Government Policies, Not Minimum Wage, For Challenges Faced By Private Sector Businesses

Nigeria Labour Congress (NLC) says bad policies of the federal government, and not the new minimum wage of N250,000 being demanded for workers, are the major problems threatening business survival in the country.

President of NLC, Mr. Joe Ajaero, made the assertion on Tuesday in Lagos, when he addressed the 67th Annual General Meeting of the Nigeria Employers’ Consultative Association (NECA).

Ajaero blamed members of the organised private sector for keeping silent when President Bola Tinubu removed petrol subsidies and floated the naira.

The NLC president also said the time had come to bring all elected politicians under the wage system, even if it would warrant creating levels 18, 19 and 20 for them, so that everyone’s remuneration would be clear to all Nigerians.

Ajaero said, “The fact is that when you destroy the economy (with policies) everybody will suffer. I met President Tinubu last week. And he said, ‘Ajaero, you are holding my hands. After the first increase in the price of petroleum products, you did not want me to increase it again. If you allow me to increase it, I will pay that minimum wage.’

“Tinubu gave analysis that petrol is N2,000 in Cameroon; N1,800 in Niger; and N1,700 in Ghana. That shows you where we are heading to.

“So, we should not break our heads over this issue of minimum wage.

“It is not the salaries you are paying workers that are affecting businesses. Rather, the ease of doing business in Nigeria is the major problem.

“We are here to tell NECA that when they (federal government) increased tariff, you kept quiet. Sorry to say this. But it is telling more on businesses. It is biting. 

“Those of you that were running factories on diesel know that you can no longer do that. These are the problems. Not the workers’ salaries. 

“You will go to the black market to buy dollar at N1,500 to import your inputs. But, how are you going to sell your finished products? So, there is enough pressure on everyone.”

Ajaero said NLC was not looking at figures, but the cost of living, because a plate of rice served without meat and water was now N300 or more.

He stated, “Even the N60,000 that NECA and the government proposed for us cannot afford a loaf of bread daily at the price of N2,000 per loaf. 

“These are the things that make us to be complaining. How much is a tuber of yam? That is the challenge we have in this country.

“They said that our N250,000 is not realistic. But is their N60,000 realistic? How many families can leave on that?”

Ajaero said N60,000 monthly minimum wage would not have been a problem if the government had implemented proposals, like the introduction of Compressed Natural Gas (CNG) vehicles, for public transportation before it removed the petrol subsidies.

He said, “The NLC has proposed many options for government to address, apart from the minimum wage. If they had addressed those issues before saying that subsidy is gone, you will not have these challenges.

“Nobody will be under pressure when subsidy was gone because there will be alternatives. They have to wear their thinking cap so that we will salvage this country.

“If the CNG that we agreed with them was implemented, a vehicle that you are filling with N50,000 can be filled with N15,000 gas.

“If you are selling PMS at N2,000 and I have the option of CNG that is okay. It is a question of converting my vehicle to CNG.”

The NLC leader also used the occasion to ask industrialists to be mindful of workers’ safety, and said safety standards were being violated.

“There used to be factory inspectors in the Ministry of Labour, who went round the factories to ensure these safety standards were maintained. As of today, I am not sure if this is still the case,” he said. 

Ajaero stated that the National Assembly was meeting to decentralise wages, even though the International Labour Organisation (ILO) convention was clear that wages were a national matter.

He insisted, “Nigeria is not an exception. But if that is allowed, all of them (legislators, governors, and president) would be brought under the minimum wage.

“Even if they want, let them have level 18, 19 and 20. But let them come under the wage system. And if it is possible, let the legislators work on part time basis. The money being spent there is unimaginable. We should know your wages.”

Ajaero called on the federal government to constitute the boards of the National Pension Commission (PENCON), National Social Insurance Trust Fund (NSITF), and National Directorate of Employment (NDE), among others.

He said, “The activities of all these are organisations, where we are institutional members, are being paralysed by Nigeria’s government by not constituting their boards.

“More than one year in office is enough for the boards of NDE, NSITF, PENCON, etc. to be reconstituted so that we will serve the workers and the employers.”

Dike Onwuamaeze

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