Uchechukwu Okoroafor, Abuja
The largest umbrella body of Nigerian workers, the Nigeria Labour Congress (NLC), the Trade Union Congress (tuc) and their affiliates on Wednesday August 2, 2023 staged a protest march against the poor remuneration of the workers amid humungous salaries and allowances of executive and legislative officials in government.
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The workers are particularly asking for a new minimum wage following the removal of the fuel subsidy by the Bola Ahmed Tinubu administration that has exacerbated hardship and poverty in the country. Nigerian workers deserve more than they are getting from the government and other employers of labour.
Nigeria, with its abundant resources and a large, dynamic workforce, has the potential for robust economic growth and development.
However, despite its economic potential, many Nigerian workers continue to struggle due to poor remuneration. The issue of low wages and inadequate compensation has been a longstanding problem in the country, leading to economic hardships, social inequality, and widespread poverty.
In this editorial, we will delve into the challenges faced by Nigerian workers, the implications of poor remuneration, and propose solutions to ensure they receive a living wage.
The Nigerian workforce is diverse, with workers employed across various sectors, from agriculture and manufacturing to services and technology. However, a significant portion of these workers, especially those in the civil service or public service and the informal sector, earn wages that are well below the poverty line.
The majority of Nigerian workers struggle to meet their basic needs, such as housing, food, education, and healthcare, due to the meager salaries they receive.
One of the primary reasons for poor remuneration is the prevalence of low-skilled jobs that offer minimal wage levels. Many workers are engaged in subsistence farming, petty trading, or menial labour, which does not provide adequate compensation to meet the rising cost of living. Additionally, the lack of enforceable minimum wage laws in some sectors further exacerbates the problem, leaving workers vulnerable to exploitation by unscrupulous employers.
The consequences of poor remuneration for Nigerian workers are far-reaching and have significant implications for both individuals and the country as a whole. Some of the key implications include: Poverty and Inequality. Low wages perpetuate a cycle of poverty, making it difficult for workers to escape the clutches of destitution. The increasing wealth gap between the rich and the poor exacerbates social inequality, leading to social unrest and a fragmented society.
Poor remuneration leads to demotivated and disengaged employees, resulting in reduced productivity and inefficiency in the workforce. This hampers the overall economic growth of the country.
Many skilled workers seek better opportunities abroad due to the lack of competitive wages and better living conditions at home. This brain drain further stifles economic progress and hampers the country’s development.
Insufficient wages hinder access to healthcare and nutritious food, leading to declining health among workers and their families. This, in turn, increases the burden on the healthcare system and reduces the overall quality of life.
Inadequate remuneration also affects access to education, as families struggle to afford school fees and related expenses. This perpetuates a cycle of limited educational opportunities and hinders human capital development.
What should be done to address the issue of poor remuneration and ensure that Nigerian workers receive a living wage? Several comprehensive steps need to be taken which include establishing and enforcing a living wage standard. The government should work with stakeholders, including labour unions and employers’ associations like the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) among others, to establish a living wage standard that takes into account the cost of living, inflation rates, and basic needs of workers and their families. Legislation should be enacted to enforce this standard across all sectors.
There should be rigorous implementation of minimum wage laws, a situation where many states have not domesticated the now outdated N30,000 minimum wage is no longer acceptable. Already it had been reported that N200,000 minimum wage is being proposed for public servants as a result of the hardship created by the removal of fuel subsidy by President Bola Ahmed Tinubu and it had also been reported that federal government said it has the capacity to pay N200,000 minimum wage, but the state governments said they cannot pay that amount. What is important is that whatever that government and the organized labour agreed to be the minimum wage must be enforceable by law so that some state governments would not continue to shortchange the workers under the guise of lack of money, even though the governors and their commissioners are living ostentatious lifestyles. Stringent enforcement mechanisms should be implemented to ensure compliance by employers.
Similarly, regular reviews should be conducted to adjust minimum wages to keep up with inflation and rising living costs.
Government should also promote decent work conditions. The government should encourage the creation of decent jobs with fair pay, reasonable working hours, and safe working conditions. Incentives can be provided to businesses that comply with these standards and encourage skill development and education. Investing in education and skill development programmes will empower workers to access higher-paying jobs. This will, in turn, increase their earning potential and contribute to economic growth.
Small and Medium Enterprises (SMEs) play a crucial role in job creation. The government should provide financial support and incentives to SMEs, allowing them to pay competitive wages and contribute to job growth.
There is also a need for labour market data which is almost non-existence in Nigeria today. Most of the data both from World Bank or Nigeria Bureau of Statistics are at best mere estimates, as the country had been lagging behind in generation of accurate census data. Accurate and up-to-date labour market data will help policymakers understand wage trends, identify disparities, and develop targeted policies to address wage-related issues.
Government should foster social dialogue to avoid incessant labour unrest and strikes that cost billions of naira loss to the economy of the country. This, the government could do by promoting dialogue between employers, workers, and the government to negotiate fair wages and working conditions. Engaging all stakeholders will ensure that policies are equitable and sustainable.
The poor remuneration of Nigerian workers is a deeply concerning issue that demands urgent attention. Addressing this problem requires a multi-faceted approach that involves collaboration between the government, employers, and workers. By establishing and enforcing a living wage standard, promoting decent work conditions, and investing in education and skill development, Nigeria can pave the way for a brighter future where all workers receive fair compensation and have the opportunity to lead fulfilling lives. It is time for the nation to recognize the invaluable contributions of its workforce and take decisive steps to uplift their standard of living and drive economic progress.