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Nigeria lawmakers double minimum wage after labor dispute

July 23, 2024

The Senate agreed to raise the minimum wage after pressure from trade unions. However, the increase is only a small reprieve amid runaway inflation.

https://p.dw.com/p/4idfq
Joe Ajaero, centre, Nigerian Labor Congress President, speaks during a protest against the recent increase in the electricity tariff, in Abuja Nigeria, on May 13, 2024
Labor unions have said that the minimum wage increase is not enough, but accepted the deal to end a long-running disputeImage: Sunday Alamba/AP

Lawmakers in Nigeria's Senate passed legislation on Tuesday to increase the monthly minimum wage more than twofold.

The bill increases the minimum wage to 70,000 naira ($44.16, €40.69), up from the 30,000 naira that was agreed in 2019.

President Bola Tinubu must still give his assent for the law to come into full effect.

Lawmakers also agreed to shorten the review period until the next possible minimum wage increase, from five years down to three years.

Minimum wage pales in comparison to rising inflation

The legislation comes after a monthslong dispute between the government and Nigeria's two major unions, the Nigerian Labor Congress (NLC) and the Trade Union Congress (TUC).

They argued that soaring prices and a weak currency had thrown workers into a cost-of-living crisis.

Since coming to office, Tinubu has removed fuel subsidies in a move that has seen gasoline prices more than double.

Inflation reached 34.1% last month, the highest rate in three decades. At the same time, the unification of the country's various exchange rates has devalued the naira, making imports more expensive.

How Nigeria's economic woes impede access to medications

Corruption and poverty in Nigeria

The bill was passed in the Senate and the lower parliament without any opposition.

Nigerian newspaper The Punch reported that the unions had originally proposed a minimum wage of nearly 500,000 naira, which they later brought down to 250,000 naira.

Disputes over the amount triggered strikes that brought Africa's most populous nation to a halt.

After meeting with President Tinubu earlier in the month, the labor leaders accepted the sum of 70,000 naira.

But the unions accepted the offer with "mixed feelings," NLC President Joe Ajaero said on Thursday.

Nigeria is a major oil exporter, but it remains one of the world's poorest countries. The natural wealth is often diverted by corrupt officials to fund lavish lifestyles.

President Tinubu gave his approval to spend millions of dollars on sport utility vehicles last year, with his wife being among the beneficiaries, despite not holding any constitutionally recognized office.

ab/fb (Reuters, AP)