Senator Adams Oshiomhole, in a recent lecture at the National Institute of Security Studies in Abuja, voiced concern over the worsening financial situation faced by Nigerian workers.
Speaking to the Executive Intelligence Management Course 17 members, Oshiomhole argued that Nigerian workers today are far poorer than workers in earlier decades.
Oshiomhole highlighted that the current minimum wage of N70,000, despite being a significant improvement over the previous amount, is reduced in value due to Nigeria’s weakened currency.
He said, “When the minimum wage in Nigeria was established under President Shagari, around 1981, it was about N125, which was equivalent to around $160 a month. Today, despite a 100% increase achieved by labour last year, the current exchange rate reduces this N70,000 to just $42.
“So, if you divide N70,000 by N1,650, it gives you $42. This shows that working people are much, much poorer now than we were many years ago. This income devaluation affects the quality of life and everything else.”
“A serious employer should not be paying the minimum wage; they should pay more. Major employers, like the civil service, should not pay just the minimum wage. I expect the Federal Government will, over time, adjust its minimum wage.
“When I was NLC President, we agreed that oil-producing states, like Delta, Bayelsa, Rivers, Akwa Ibom, and Lagos, which have significant revenue, should pay no less than N7,000—the same as the federal rate.
“Interestingly, when we pursued this, the current President was then Governor of Lagos State. He showed me all the books and said he couldn’t afford it, but I had to push him. We organised strikes to make sure that all necessary funds were used for salaries, even if it meant sacrificing other projects.
“My job then was not to sympathise with the employers; it was to ensure workers got their due.”
“If you look at the law in Nigeria, which I hope we can amend soon, although the federal government and states have agreed on a N70,000 minimum wage, some employers still pay less, as the law only applies to enterprises with around 25-50 employees.
“But in today’s economy, a small ICT company with only 10 staff can still generate significant turnover, so the old employee number criteria are outdated.”
“If you check, the minimum wage in California is $16 an hour. Working eight hours a day amounts to $128 daily. Over a month of 20 working days, this totals $2,560 for unskilled labour, a vast difference compared to Nigerian wages.”
“We are going through challenging times, but as the saying goes, tough times don’t last; tough people do. Nigerians are tough, and this time will pass. Prosperity will return if we make the right policy choices and preserve past gains.”
