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[OPINION] Why Minimum Wage Is a Bad Idea - Azu Ishiekwene
I’m opposed to minimum wage. And I know I’m saying this at the risk of losing readers. The minimum wage hurts the poor and vulnerable in whose name and interest Labour claims to strike.
Sounds foolish, right? How can more naira in the pocket of the Nigerian worker currently on a minimum wage of N30,000 be bad?
In a country where each of 469 lawmakers earns N13.5 million monthly, minus allowances, and office holders in the executive branch use large convoys and maintain large personal staff at the public expense, why should there be any fuss about the government paying N494,000 monthly as minimum wage to workers?
Bad example
The obscenity of public sector waste has been one of the strongest arguments for a new minimum wage. On top of that, there has been the inflationary impact of the adjustments announced last year by President Bola Ahmed Tinubu, especially after the removal of the petrol subsidy and efforts to close the arbitrage in the foreign exchange market.
The argument for minimum wage is that if some folks, especially politicians, have assumed the prerogative of helping themselves to the treasury by ingenious means, what is sauce for the goose must also be sauce for the miserably impoverished gander.
Yet, a minimum wage is one slippery slope guaranteed to take the gander from economic misery to wretchedness. Basic Economics by Thomas Sowell makes the point very clear, and the lives of those who might disagree will bear out the evidence.
Wage law trap
One, minimum wage laws set artificially high wages that can lead to lower employment opportunities, particularly among low-skilled workers. Take Nigeria, for example. Of the estimated 80 million labour force, skills among the largest demographic of this population (those between 25 and 34 years of age) are inferior.
A 2022-23 study showed that only one in 10 workers are managers, professionals, technicians, clerical support workers or occupations that require high skill levels. Most need to be better skilled and would be seriously disadvantaged in competing for any opportunity that may attract relatively high wages.
Remember that the essentially overpaid, underworked, and yet restive public service – whether at the federal, state or local government levels – comprises only a tiny fraction of the workforce. Nearly 90 per cent of Nigeria’s workforce, which may be affected by any artificial wage adjustment, are in the informal sector, that is, outside white-collar jobs.
Cutting your nose
If employers are forced to make hard economic choices about hiring or firing due to artificially fixed wages, the low-skilled and vulnerable ones whose battle Labour claims to be fighting would be the first to go. Minimum wage laws do not necessarily guarantee jobs, yet they make it more expensive to hire or retain low-skilled workers that such laws are supposed to protect.
Two, minimum wage may lead to further increases in prices. In 1974, when the government of General Yakubu Gowon accepted the Udoji commission report and nearly doubled salaries across the board, taking primary school teachers from N540 to N1,080, for example, price levels skyrocketed, even before the government implemented the new wages in the public sector! It’s convenient to say it won’t get worse until your maize seller or maiguard hears you’re now on a monthly salary of N494k!
Third, another unintended consequence of minimum wage is that it might reduce job opportunities for young people because employers may be forced to prioritise experience and skills. Also, minimum wage laws could reduce the chances of employment amongst groups, like the physically challenged, for example, who may be perceived to be less productive.
Of course, there is the other side – those who argue that if left alone, the typical employer would squeeze the last productive juice from the worker before any wage adjustments.
Supporters of this position say that the fair thing to do to reduce income inequality, boost economic growth, reduce labour turnover, and promote social mobility, among other things, is to fix wages. Prominent economists Paul Krugman and Joseph Stiglitz belong here.
I don’t. And I have no regrets. Not that I don’t believe that fair is fair. My point is that that is not a lesson the government is competent to teach the market. If an employer – any employer – decides to mistreat its workers, it would only be a matter of time before such an employer would be out of business. In a free market, the skills and talents of the worker will, sooner than later, find better, more rewarding opportunities.
Other options
And who says minimum wage laws are the only way to encourage fairness and social mobility in the workforce? Earned Income Tax Credits (EITC), which target low-to-moderate-income earners or a more transparent variety of the Nigerian equivalent – conditional cash transfers (hopefully with a more reliable database) – is another way. Several African countries, including Kenya, South Africa and Ghana, have modified and adopted this system.
Also, market-indexed wages (here again, Ghana could serve as an example) remove the unending, disruptive cycle of national minimum wage negotiations and strikes. There are other options, including performance-based pay and flexing compensation.
Many workplaces today were built on the expensive brick-and-mortar model, which has become too costly and inefficient. Employers could consider flexible work hours or more remote options to reduce commute and overhead costs and encourage moderate wage compensations.
On whichever side you belong, the consensus among economists is that minimum wage laws increase unemployment among low-skilled workers, a bitter truth that Labour may be unwilling to face.
Of course, it’s not only minimum wage that is bad for jobs. Over-regulation concerning capital, high corporate taxes and levies, poor infrastructure and bureaucratic hurdles to contract enforcement are also bad for jobs, businesses, and workers.
Thatcher way
I don’t like Magaret Thatcher, primarily for her duplicity over apartheid. But she gets full credit in my books for saving Britain from the wild strikes of wild unions that brought the country to its knees.
Of course, it’s also fair to say that, unlike Nigerian governments, Thatcher did not break workers’ eggs to make her omelettes. She was not for the turning in her determination to free the economy from the shackles of unions and in her government’s example of austere living.
Yet today, Britain appears to be losing its competitive business edge. Partly a result of the resurgence of the unions and right-wing rhetoric, it falls among countries which have been worst for income in the last 15 years, with incomes across the board growing by just six per cent since 2009, making it a laughing stock among countries in its league.
Half-full
Nigeria is not listed among countries with the slowest wage growth at least in the last 15 years, a list which includes countries like South Sudan, Central African Republic, the Democratic Republic of Congo, Niger, Malawi and so on. Apart from bureaucracy and corruption, the main challenge for Nigeria has been the tendency, especially among states, the main power blocs, to prioritise rent and politics over creativity and competition.
The strikes and disruptions over wages are not funny at all. In the cauldron of Nigeria’s post-election politics, this may look, smell, and even feel like a continuation of the war by other means. But in the end, we all pay a price. And you know what? The serious world doesn’t care. It is moving on!
[STATE HOUSE PRESS STATEMENT] Leaked Documents on Fiscal Policy Proposals Not Official
The attention of the Presidency has been drawn to two fiscal policy documents in circulation that are being given wide coverage by the mainstream media and social media platforms.
One of the documents titled Inflation Reduction and Price Stability (Fiscal Policy Measure etc) Order 2024 is being shared as if it were an executive order signed by President Bola Ahmed Tinubu.
The other is a 65-page draft document with the title "Accelerated Stabilisation and Advancement Plan (ASAP), which contains suggestions on how to improve the Nigerian economy. President Tinubu received a copy of the draft on Tuesday.
We urge the public and the media to disregard the two documents and cease further discussions on them. None is an approved official document of the Federal Government of Nigeria. They are all policy proposals that are still subject to reviews at the highest level of government. Indeed, one has ‘draft’ clearly written on it.
According to the Coordinating Minister of the Economy, Mr. Wale Edun, “It is important to understand that policymaking is an iterative process involving multiple drafts and discussions before any document is finalised.
“We assure the public that the official position on the documents will be made available after comprehensive reviews and approvals are completed."
Emanating from the two documents have been reports second-guessing government's policy on customs tariffs, fuel subsidy and other economic matters.
"The government wants to restate that its position on fuel subsidy has not changed from what President Bola Ahmed Tinubu declared on 29 May 2023. The fuel subsidy regime has ended. There is no N5.4 trillion being provisioned for it in 2024, as being widely speculated and discussed,” Edun stated.
The Coordinating Minister of the Economy further clarified: “As previously stated by government officials, including myself, President Tinubu announced the end of the fuel subsidy program last year, and this policy remains firmly in place.
“The Federal Government is committed to mitigating the effects of this removal and easing the cost of living pressures on Nigerians.
“Our strategy focuses on addressing key factors such as food inflation, which is significantly impacted by transport costs. With the implementation of our CNG initiative, which aims to displace high PMS and AGO costs, we expect to further reduce these costs.
“Our commitment to ending unproductive subsidies is steadfast, as is our dedication to supporting our most vulnerable populations”.
We call on the media to always exercise necessary checks and restraints in the use of documents that do not emanate from official channels so that the members of the public are properly informed, guided and educated on government policies and programmes.
Bayo Onanuga
Special Adviser to the President on Information and Strategy
[OPINION] Navigating the Labour Strike: Striking a Balance for Fair Wages - Suanu Natureal Nkipnee
In recent times, Nigeria has witnessed labor strikes as workers press for a substantial increase in the minimum wage to ₦459,000. While the demand highlights the struggles faced by many Nigerians, it's essential to consider the broader economic implications and strive for a balanced approach.
Economic Realities
Nigeria has faced significant economic challenges, including high inflation, currency depreciation, and fluctuating oil prices. As of May 2024, the inflation rate is 33.69%, and the exchange rate is $1/₦1,468.18. These factors have eroded the purchasing power of the average Nigerian worker.
The demand for a wage increase to ₦459,000 underscores the financial strain on workers. However, such a substantial hike may not be economically feasible.
The Demand: ₦459,000 Minimum Wage
Unrealistic Expectations
Inflationary Pressures: A sudden increase to ₦459,000 could worsen inflation as businesses pass on increased labor costs to consumers.
Economic Strain on Businesses: SMEs may face reduced hiring, layoffs, or closures, worsening unemployment.
Government Budget Constraints: Meeting such high wage demands could require significant tax increases or service cuts, harming the economy further.
A Realistic and Ideal Landing
Incremental Increase to ₦121,367:
Basis: This figure adjusts for inflation over the past 10 years, ensuring wages keep pace with the cost of living.
Feasibility: This increase provides meaningful relief to workers while being manageable for businesses and the government.
Steps Forward:
Structured Wage Reviews: Regular reviews and adjustments of the minimum wage based on inflation and economic growth.
Economic Diversification: Investing in sectors beyond oil to create more jobs and stabilize the economy.
Strengthen Social Safety Nets: Enhancing social programs to support vulnerable populations, reducing financial pressure on workers.
Improve Business Environment: Policies that support business growth, ensuring enterprises can afford to pay fair wages.
Conclusion
While the call for ₦459,000 minimum wage highlights workers' financial difficulties, it's crucial to balance this with economic realities. An incremental increase to ₦121,367, along with structured wage reviews and economic reforms, offers a realistic and sustainable path forward. By working together—government, businesses, and labor unions—we can ensure fair wages and economic stability for all Nigerians.
- Suanu Natureal Nkipnee, ACA, ACIPM
Minimum Wage Negotiation Stalled As FG Fails To Make Fresh Offer
Negotiations on the new national minimum wage hit a snag yesterday as the Federal Government’s negotiating team failed to present a new offer beyond the previously stated ₦60,000.
This development follows President Bola Tinubu‘s directive on Tuesday to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to finalize the cost implications of the new minimum wage and submit an affordable, sustainable, and realistic proposal.
The President had emphasized the urgency of the matter, mandating that the government’s new offer be ready by Wednesday to serve as a basis for resumed negotiations with Organised Labour.
This instruction was part of a broader call to expedite all processes involved in the discussions to reach a timely conclusion.
However, during the negotiation meeting that resumed at 3:30 pm on Wednesday, it became apparent that the government team was not ready to present a new proposal.
Sources close to the negotiation table told Vanguard that the government’s absence of an updated offer limited progress in the talks.
A source at the meeting said: “The meeting was adjourned to give the Minister of Finance time to meet the deadline given to him by the President to present cost implications to him.
“We just deliberated generally and then they (the Federal Government team) said we needed to adjourn because they needed to get to the President. You know he (President Bola Tinubu) gave them an ultimatum to give him the cost implications.
“So we could understand that they did not have anything to give us since they had not given the President the cost implications. Those present at the meeting were the Minister of Finance, Minister of Budget and Economic Planning and the Minister of State for Labour. So, we will be resuming negotiation tomorrow (today) by 2pm.”
On whether the Finance Minister gave any assurance of getting the President’s mandate before today’s meeting, the source said: “They do not have a choice, we are not bothered about them. We do not think they have a choice because they cannot disobey the President.
“If they decide to disobey the President or if the President decides to renege on his promise, we all know the consequences.”
[NaijaNews]
6 Rescued, 14 Still Trapped 2 Days After Mining Pit Collapsed In Niger
Six people have been rescued while 14 other miners are still being trapped, two days after a mining pit collapsed in Galadima-Kogo, Shiroro Local Government Area of Niger State.
Daily Trust could not independently establish if the six people rescued were alive or dead.
The permanent secretary, Niger State Ministry for Mineral Resources, Alhaji Yunusa Mohammed Nahauni, blamed the management of the mining company for the collapse.
During a visit to the site of the tragedy where one person was reported dead on Tuesday, the commissioner said the collapse was due to lack of compliance and synergy between the mining company’s management and the community.
He said the governor earlier directed the suspension of all mining activities in the state and ordered a crackdown on illegal miners due to increasing security concerns.
He said, “The governor, through the ministry, had issued letters to all the emirates, instructing them accordingly,” warning that failure to adhere to his order would result in penalties.
He also urged the site engineer to consistently follow mining principles and operational guidelines to prevent future incidents, emphasising that safety should always be prioritised.
The ministry gave the names of the 14 victims being trapped as Abdullahi Yahaya, Ibrahim Mansir, Abubakar Isah, Friday Musa and Godwin Hussaini.
Others are Benjamin Ashafa, Zayyanu Ibrahim, Abdul Ali, Hamza Musa, Umar Abubakar, Joseph Madaki, Ibrahim I. Ishiaku Kuta, Abbas Musa and Yakubu Mamman
While the State Emergency Management Agency had earlier said that 30 people were trapped, one person was killed and seven others rescued but severely injured, some locals said the number of miners trapped were more than the figures given by the authorities.
The police public relations officer, Niger State command, SP Wasiu Abiodun, in a statement, attributed the difficulty in rescuing the victims to lack of equipment.
[DailyTrust]
Daniel Bwala gives only condition to withdraw support for Tinubu
Former spokesman for the Atiku Abubakar/Ifeanyi Okowa presidential campaign in the 2023 presidential election, Daniel Bwala has said that his support for President Bola Tinubu is not for better for worse.
Bwala said he would easily work away if the President goes against the constitution of Nigeria and democratic Ideology.
He said this during an interview on Arise TV on Wednesday, insisting he had a good time with Atiku Abubakar but had to shift his support to Tinubu when it was clear the presidential election was over.
Bwala who was a strong supporter of former vice president Atiku, said, “It was nice that I supported former vice president Atiku and for the period I supported him, I gave my all but when I made a decision to support President Tinubu, it is just owing to the fact that the elections are over.
“We all know the problem we are in and if you’re privileged to have an attention of somebody who is now the sitting president who didn’t meet you in the first place but he felt that you have something to offer and said ‘Come and be a part of what we are doing in this government, let us see how you support good governance’, I feel it’s an honour.
“And don’t forget I was Asiwaju’s loyalist before. I changed party to Atiku, it is not a situation of going back to somebody you don’t know, I have always believed in him.
“The only thing that will make me withdraw my support for President Bola Tinubu is if he goes against the constitution of Nigeria and goes against democratic ideology but I do not see that happening because President Bola Ahmed Tinubu is on course.
“He is redefining the structure of our foundation and economy and I know that the decisions are hard, but they are definitely decisions that are going to work at the end of the day.”
[DailyPost]
[OPINION] Ajaero’s many strikes - Jide Oluwajuyitan
Nigerians are groaning under the weight of food inflation which in March this year stood at 41.1 % as a result of the devaluation of the naira and high importation of food items. It is the same with transport inflation which currently stands at about 30% because of government unavoidable removal of fuel subsidy scam costing the country N3trillion loss yearly and consequent increase in pump price of imported petrol. Government has continued to appeal to Nigerians for more sacrifice while assuring us of greater gains after the current pains.
While most enlightened Nigerians identified with government plea that we cannot have omelette without first breaking an egg, many believe Nigerians are being asked to pay for the sins of unpatriotic Nigerians especially in the oil and banking sector responsible for our current economic nightmare. It was for this reason government came up with some palliatives and also set up a tripartite body of 37 members with organized Labour to look at the issue of minimum wage in the country.
Unfortunately, as it has turned out, if Joe Ajaero who has not been able to distance himself from the Labour Party and his group are not playing politics, they are out rightly incompetent. While it often takes as much as a year to negotiate a minimum wage in other climes, what manner of Labour leader after two strikes in less than a year, would declare a third one, arrogantly labelled “indefinite strike” without a thought for the health of the economy of a nation in distress?
The immediate cause of Ajaero’s current indefinite strike was because of a stall in negotiation by the tripartite body set up by government that has offered N60,000 as minimum wage as against Organized Private Sector’s (OPS) N57,000 and Ajaero Labour’s unrealistic N476,000. Obsessed with the federal government headed by their political foe, Ajaero and organized labour forgot that besides the federal government, other stakeholders include the 36 states of the federation, 15 of who are yet to fully implement the N30,000 minimum wage approved by President Buhari in 2019 and 774 LGAs battling for survival.
For any competent labour leader, as observed by Daniel Bwala (Atiku’s former spokesman) on TVC programme on Monday, figures presented during wage negotiation must be based on available and verified government resources .The starting point according to him is to find out how much is accruing to government, its distribution and identifying sectors Labour believes can be starved of funds to accommodate its own demand.
In other words, Ajaero and his group ought to know that the main source of government revenue is taxation: (personal income tax, corporate tax, excise duties, export and import duties, royalties from oil and other minerals, government domestic borrowings through sale of government securities through stock exchange and external borrowings through bonds for long term government loans or borrowings from IMF or World Bank and foreign grants.)
The above revenue figures can be accessed by labour leaders during budget debate and budget public hearing while the concurrent and capital expenditures the revenues are to cover can also be scrutinized.
But instead of going through this constitutional process, what did Ajaero and his fellow politicians masquerading as union leaders do? They came up with arbitrary figures they claimed was based on cost of feeding an individual member of a family of six thrice a day for one month, citing the current price of imported bag of rice.
But we don’t need to be labour leaders to know that minimum wage is for starters and not for a family of six. In any case, when did the number of children a family decides to have become the criteria for fixing minimum wage in a nation operating a market driven economy? We can as well advance Labour’s sloppy argument by saying since Islam allows adherents to marry four wives and indeed a member of the federal legislature once displayed his four wives and some two dozen children on the floor of the house, we might as well settle for four wives and 22 children as the basis for arriving at a minimum wage.
It is surprising that in their overenthusiasm to shut the nation and its wobbling economy down indefinitely, over their proposed unrealistic figures of N475, 000 for a cleaner or a messenger, they forgot the monster we are currently fighting is inflation. Precisely because they believe they can intimidate the federal government and the state government including Imo State where they were once involved in fisticuffs with party rivals, they pretended they did not know that they cannot force private sector to give what they cannot afford or dissuade them from downsizing. A Senior Advocate of Nigeria invited to throw more light on the issue by ARISE TV on Monday evening did not weigh words. If asked to pay Labour’s unrealistic minimum wage, he would reduce number of lawyers in his chambers by half, he declared.
But more disturbing is the way Ajaero and his ill-trained labour leaders behave as if they are above the law. Their first strike just as this government was taking off was said to be illegal. Their current indefinite strike has been declared illegal by the well-respected Minister of Justice and Attorney General. And as if to confirm Ajaero’s penchant for behaving as if he is above the law of the land, last Monday in addition to ordering hospitals and international airports across the country be shut down, he also shut down the national grid, an illegal act that constitute a threat to national security.
President Tinubu is an avowed democrat who believes in the rule of law. And this is why he must ensure those engaged in illegal and callous shutting down of the national grid must be made to face the law. And with three strikes in one year, two of which were illegal, it is apparent, Ajaero’s goal is not workers’ welfare but destabilizing the country. We could not have suddenly forgotten that some members of his party called for military take-over following their electoral defeat in 2023.
Kano sibling spiritual wars
Lamido Sanusi’s sermon at last Friday prayers centred on the need for Muslims to accept their destiny for good or for bad: “We must believe whatever happens to us is predetermined and what we couldn’t have is also from God”. For those who claim religion is the opium of the poor, the Hausa masses who literarily worship their emir and spiritual leader are not complaining over their lot in life? On his path, by focusing on the theme of contentment, Sanusi is doing his job of preventing social dislocations by those who live in abject poverty while emirs live in opulence or as Fela put it. (Suffer suffer for earth enjoy for heaven while the Pope and Iman de enjoy for earth).
A few years back, Sanusi also paid glowing tribute to his grandfather who supervised the famous Kano groundnut pyramids and his father who attended one of the best universities in the world. Sanusi, the father or the son, didn’t need to be troubled that the children of labourers who laboured day and night to cultivate the groundnut farms while emirs sent their own children to the best universities in the world, ended up as labourers. After all the policy of feudalism is ‘labourers born labourers’. And precisely because emirs’ word among the ruled, rich or poor, is law, his admonition to Ado Bayero, the deposed cousin he replaced to accept his destiny, is in order.
Halima Abubakar reveals battle with mysterious illness
Actress Halima Abubakar has shared an emotional video on Instagram, detailing her struggle with a mysterious illness.
In the video, Abubakar tearfully described how the illness has felt like a punishment, adding that she believes it was a lesson from God.
She expressed deep gratitude to those who have supported her without judgment, acknowledging that the illness has been a challenging journey that helped her appreciate life more.
Abubakar emphasized that she is not seeking pity but wants to thank God for sustaining her through the ordeal.
Captioning the video, she wrote: “Good morning everyone following me, so I made a video for you all but the reel is filled up. So if I don’t know your names, it wasn’t intentional. God bless you all and enlarge your coast. You won’t lose anyone in your family. I don’t have the strength to mention everyone. May Heaven bless you my wonderful co-stars and fans. This video is for you all”.
[TheNation]
Minimum wage: Finance minister submits template to Tinubu today
The Federal Government and Organised Labour on Wednesday adjourned the minimum wage talks till Thursday (today) when the negotiation is expected to continue.
The Tripartite Committee on National Minimum Wage postponed the session in anticipation of the Minister of Finance, Wale Edun, submitting the salary template to President Bola Tinubu today.
Tinubu had on Tuesday directed the finance minister to present the cost implications for a new minimum wage within two days.
The President gave the order at a meeting with the government negotiation team led by the Secretary to the Government of the Federation, George Akume, at the presidential villa in Abuja.
Sources in the labour unions privy to the committee meeting said the parties decided to await the outcome of the presidential template before proceeding with further negotiations.
A source who attended the meeting said, “The meeting has been adjourned until Thursday. We showed understanding because we all know that the president gave the minister of finance 48 hours to come up with a minimum wage. So, we decided to give them the time. We will be meeting by 2 p.m.”
A top labour official who is a labour representative on the tripartite committee explained that the template was crucial to the minimum wage negotiation.
The source, who cannot be quoted because he was not authorised to disclose information to the media on the negotiation, expressed confidence that the talks would record good progress once the presidential template is presented to the parties.
The Minister of Information and National Orientation, Mohammed Idris, had hinted that the President wished to know the financial implications of the new minimum wage in 48 hours.
Briefing journalists on the presidential directive, the information minister said, “We were all there to look at all issues, and the President has directed the minister of finance to do the numbers and get back to him between today and tomorrow so that we can have figures ready for negotiation with labour.”
Idris assured of the president’s readiness to accept the committee’s resolutions, adding that “The president is determined to go with what the committee has said and he’s also looking at the welfare of Nigerians.
“Government is not against or opponent of labour discussions; the government is not an opponent of wage increase, but what is there is that government is always there to ensure a balance between what government pronouncement is and what the realities are on the ground.
“And therefore, we will work assiduously to ensure that whatever promises the government makes are promises that will be kept. That is the idea of this meeting.”
Furthermore, he said Tinubu directed the government representatives to work collectively with the organised private sector and the sub-nationals to achieve a new affordable wage award for Nigerians.
Idris explained, “The President has given a marching order that all those who have negotiated on behalf of the Federal Government and all those who are representatives of organised private sectors, the sub-nationals to come together to have a new wage that is affordable, sustainable and realistic for Nigerians.
“The wage is not just that of the Federal Government; as I mentioned earlier, the sub-nationals are involved, the organised private sector is involved; the Labour stepped out during that procedure. Now we have come back to the negotiation table.”
The minister assured that all hands would be on deck to present a new minimum wage for Nigerians in one week.
“All of us will work together assiduously within the next week to ensure that we have a new wage for Nigeria that is acceptable, sustainable and realistic,” Idris said.
Despite the intervention of the leadership of the National Assembly, labour embarked on a nationwide strike on Monday and Tuesday, crippling economic activities nationwide.
Banks, airports, public schools and courts were shut, forcing the Federal Government to convene an emergency meeting to find a way out of the impasse.
Following a meeting with the SGF, National Assembly leaders, and the National Security Adviser, Nuhu Ribadu, on Monday, the unions announced on Tuesday the suspension of industrial action for five days after President Tinubu agreed to pay a national minimum wage higher than N60,000. The tripartite committee pledged its readiness to convene daily until a new minimum wage is announced.
In an interview on Channels television, the President of the Trade Union Congress, Festus Osifo, said the unions would not insist on its N494,000 demand, indicating that the labour leaders were willing to accept a reasonable compromise.
Though the union leader refused to mention a specific amount, he said the new minimum wage must equal purchasing power to the value of N30,000 in 2019 and N18,000 in 2014.
Meanwhile, airlines lament the revenue loss incurred during the two-day strike declared by the labour unions.
The action forced airports to shut down, resulting in scores of cancelled flights and huge financial losses.
The Chief Operating Officer of United Nigeria Airlines, Osita Okonkwo, highlighted the severe impact of the strike on UNA’s operations.
He said, “For two days, we didn’t fly. Ours (revenue loss) runs into millions. We do about 24 flights every day, and for two days, we didn’t do 48 flights. I can tell you it runs into millions.
“Our passengers were continuously informed of the situation. Our call centre was busy 24/7. The fallout now is what do we do with passengers who want to continue with their businesses because they have lost two days and all want to travel tomorrow (today)?
“And then, we have passengers booked to travel tomorrow (today). We are trying to accommodate as many as we can. Where possible, we put in additional flights. But you know capacity, you can’t stress it too much. Most flights are full now because of what happened in the last two days. It is not like we are against the strike, but everybody is feeling the situation of the country.’’
Okonkwo canvassed that essential services should be exempted from strikes, lamenting the plight of stranded passengers.
“It is understandable what labour is doing. But essential services should be exempted from this type of strike. Hospitals, and air travel, because some people had connecting flights. Some were stranded in Asaba, and they were supposed to go to Europe,” he noted.
The Chief Operating Officer of Ibom Air, George Uriesi, also expressed concern over the financial losses recorded by the local airlines during the labour action.
“There was a massive loss of revenue. If you were going to take N100 of revenue a day, and you don’t fly at all, you will probably make N2 or N3. And then there’s more to it because we must accommodate all the people that didn’t fly. So, you may be unable to sell seats for a long time because you’re dealing with a backlog,” he explained.
The Assistant General Secretary of the Aviation Round Table, Olumide Ohunayo, emphasised the strike’s broader impact on the aviation industry.
“It’s not only the airlines. The aviation industry lost lots of money due to the strike. The airlines, airport terminals, concessionaires, taxi drivers, and others. In fact, the entire ecosystem lost millions of naira, even the charter flights.
“Some flights were cancelled. People are now forced to reschedule flights and see if they can get seats on a future date. And in getting those seats, ticket prices have jumped due to the rush to get seats.” he stated.
Pointing out the long-term economic effects on the aviation sector, the Chief Executive Officer of Centurion Security Limited, John Ojikutu, said, “The domestic airlines will lose some money, and that will affect the economy. The kind of money I’m talking about is not coming from local airlines because they contribute virtually nothing. If you compare the money they make from ticket sales to the money we make from foreign airlines, that is where the problem is.
“In the next two, three days, they would have cleared all those passengers, and we would now go back to our normal aviation problems, which are fuel and ticket fares,” he said.
Speaking on the long-drawn minimum wage negotiation, Debo Adeniran, the Executive Director of the Centre for Anti-Corruption and Open Leadership, urged the Federal Government and labour unions to finalise their talks quickly.
“The FG and the labour unions should not waste any more time beyond the 48 hours given to the finance minister. Everything is already concluded; they need to harmonise their positions based on their capacities to raise resources,” Adeniran stated.
Stressing the need for swift negotiations, he noted, “Labour unions and the FG should be realistic, which should not take an eternity to conclude. They should aim to finalise everything by the end of tomorrow (today).”
Adeniran also cautioned the labour unions against rushing to embark on strikes.
On his part, the Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, admonished the government to be honest and realistic during the negotiation.
“The Federal Government needs to be honest and realistic. They should be able to restore dignity in labour. Once the FG is realistic in presenting a minimum wage to Nigerians, there would not be any delay in the meeting with labour unions,” he concluded.
[Punch]
[OPINION] 2027 elections will test the national anthem - Abimbola Adelakun
The truth is, I do not particularly care about the words in the re-introduced national anthem that some people deem offensive. They consider words like “tribe” and “native” as derogatory and outdated, while the idea of a nation where people stand “in brotherhood” bespeaks its female gender as alien to its body politic. None of that bothers me, honestly. Even the idea of Nigeria as a “motherland,” makes a little difference to me. If Nigeria is a mother, she must be exhausted from giving without replenishment. The imagery of familyhood in the anthem does not move me. Some critics are rankled by the provenance of the national anthem, but not me. I remain unmoved by whether the anthem came from colonial masters or even Ancient Greece. Whatever!
What I find terribly amusing is the supposed objective of the anthem: to foster a united nation where everyone belongs. Now, that ideal is not only overly idealistic, but will be quickly discarded next cycle of election. None of the nice and cute words in that anthem will stand against the ferocious competition and divisiveness that typify our general elections. If you ask me, the song of fealty declaration to Bola Tinubu, “on your mandate we shall stand…” would have been a far more honest choice as the Nigeria national anthem than the farce of “Nigeria we hail thee” that will unravel when the general elections approach.
Why elections? Well, which other national event else brings out the beast in us? It is what our democracy solely boils down to, the ultimate determinant of our political personhood. For the political class, elections are a do-or-die affair because they calibrate their social relevance. You either deliver your constituency, or you die. To be a dead politician does not mean you stopped breathing. It simply means you cannot pull the required weight during an election season. For the underclass, the so-called “masses,” winning an election is imperative too. Elections do not guarantee that your material conditions will improve, but winning is a symbolic victory over other identity groups in the country.
We can still recall the triumphalism of Bola Tinubu’s supporters this time last year. Some were happy their tribe won; others celebrated their religion as the winner. Such joy is the sum total of their dividend of democracy. Democracy is a quadrennial cycle of conquest, the time we get to beat down the others wallowing in the same dysfunction as us for momentary self-validation. Anyone who thinks all of that sentiment will evaporate simply because the national anthem has a line about “tribes and tongues” has got another think coming.
In a pre-presidency interview, Tinubu mentioned that if he had his way, he would bring back the old national anthem because it “describes us better” and “we are one and one Nigeria.” Now, it is ironic that the election that allowed Tinubu to have his way and be in the place to change the national anthem actively pursued ethnic divisiveness as a winning strategy. Our public memory can be extremely short, but I do not think anyone could have forgotten the dirty details of their deeds so soon. At no point did Mr “We Are One And One Nigeria” publicly censure his attack dogs. They ran freely, digging their rabid teeth into the tender flesh of an already troubled nation. After the election, Tinubu appointed one of those e-hounds, Bayo Onanuga, as his media spokesperson. Such contradiction is their MO. They will gaslight you by preaching against toxicity in the same breath they use to spread it. Now that the Tinubu boys know that the current national fetish is “unity,” their new madness will be public payments of lip service to this idol.
Tinubu himself has been a politician enough to know that there are words, and there are also words without power. Uttered words can indeed have a perlocutionary effect if the circumstances around the speaker provide the necessary integrity. Without such galvanising context, words are just words, lacking any pronunciatory effect. Singing about building a nation “where no man is oppressed” in a country where the military can detain and torture you just because you wrote an article that one small big man in Aso Rock finds offensive is enough to douse whatever passion the anthem is supposed to inspire. For people to even call for the arrest of an activist who refused to stand up while the national anthem was being played means those clowns have not bothered to digest the anthem. Yet, they somehow expect the song to instigate unquestioning genuflections of loyalty. That anthem and the sense of national unity it is expected to foster is an intriguing example of magical thinking in contemporary Nigeria.
The anthem has words like “truth and justice,” but they are terms that have no corresponding meaning to the reality of our being Nigerian. They are words emptied of meaning; mere gibberish poor schoolchildren will regurgitate during their daily general assembly. Hardly anyone, especially those who introduced, “debated,” passed, and signed the bill for the former anthem to be restored, believes there is any charm to its composition that can make it foster unity. They demanded its re-introduction simply because they were struck by nostalgia. And what do you expect from old men whose debilitated minds have long dreamt the last of their dreams?
In fact, the 2027 election might be too far before the rubber of the virtues they want to signal through the anthem hits the road of the Nigerian political system. With the way people have been severely impoverished by the poorly conceived and ill-executed policies of this administration, do not be surprised if they testily peck at each other’s intestines earlier. By 2027, the All Progressives Congress will start fuelling and harvesting that toxicity to rally its supporters. Given their administrative missteps so far, it is not that hard to forecast how the next three years will go. It will be virtually impossible for them to sell Tinubu’s second term based on his performance, and they will need to fall back on their old gimmicks of ethnic and religious divisiveness.
You can expect that sometime in 2026, the agenda will start agending. Seemingly out of the blue, someone will restart the stale conversation about “Lagos is no man’s land” and the usual idiots will fall in line. Their choristers, presently buried in the sewers of social media, will be activated in their sleeper cells with chants of “Yoruba ronu!” Another clown will come up with a “Christianisation” agenda to mobilise Muslims who might have become disillusioned with a Muslim-Muslim presidency. Even though the present administration would not have done anything significant for Muslims, they will still stir religion by reminding Muslims of the possible loss of the presidency in which they at least get to claim some symbolic power.
As the invigorated partisans herd out to vote, guess what nobody will give a hoot about? Yup, the ideals of national unity despite diverse “tribes and tongues.” The utopic vision of a “nation where no man is oppressed” and where “peace and plenty” will one day exist will be distant in our minds. The next time you hear it will be during the swearing-in where it will be, once again, trotted out as another meaningless rite of nationhood; the things we are expected to mindlessly repeat like a digital voice assistant but which we would be dupes to believe. If those who brought back the anthem had truly believed the national anthem could potentially configure cohesive nationhood, they would have approached the whole exercise far more thoughtfully. They were shoddy because they—like most of us who will now be unfortunately subjected to mouthing meaningless words—are seriously cynical about the whole Nigerian project.