“In Nigeria, I shall have the honour and privilege to lead from May 29, workers will have more than a minimum wage. You will have a living wage, to have a decent life and provide for your families – President elect, Bola Tinubu, on May Day
Labour creates wealth is a popular maxim. Economists categorise factors of production into four, namely: land, labour, capital, and entrepreneurship. Among all these, labour is the primus-inter-pares as it harnesses others to create wealth for business owners or investors.
2023 ‘International Workers Day’ otherwise known as ‘May Day’ was celebrated across the world last Monday, May 1. In Nigeria, it was observed as a public holiday. It is the last of such to be superintended by the President, Major General Muhammadu Buhari (retd) and other governors whose tenure will be ending on May 29, 2023. At the Eagles Square in Abuja and all the state capitals, there were public gatherings, march pasts and speeches. Among other things, the Nigeria Labour Congress demanded that the retirement age for civil servants should be raised to 65 years and the length of service to 40 years. Recall that just last month Federal Civil servants under the Consolidated Public Service Salary Structure got the newly approved 40 per cent peculiar allowance increase together with the April 2023 salary.
Recall that President Buhari also on April 18, 2019 signed the N30,000 minimum wage bill into law. In 2015 he granted bailout funds to states to enable governors to pay the then N18,000 minimum wage to their workers. Furthermore, the President in April 2022 signed a bill approving an increase in the retirement age of teachers from 60 to 65 years. The new law says, “Teachers in Nigeria shall compulsorily retire on attainment of 65 years of age or 40 years of pensionable service, whichever is earlier.” It is also noteworthy that under the outgoing No. 1 citizen, the Federal Executive Council in December 2021 approved the review and upgrade of salaries of police personnel by 20 per cent. Recall also that during COVID-19 the Federal Government did not sack any of its staff despite the low productivity at the time.
Despite the aforementioned deliberate efforts at improving workers’ welfare by the Federal Government, it is disheartening that many states and local governments have not keyed into the provisioning of welfare packages to their staff. There are many states who have retrenched workers while those who did not sack have not been paying salaries and allowances as and when due. Staff promotion has been a rarity in many states and local governments while most staff do not have working tools and as such are unproductive. As of today, the working environment in many federal, state and local government offices are unconducive and appalling. No electricity, no water, no enough office furniture, no stationeries and no running cost for the offices. There’s no way workers can be productive under such deplorable working conditions.
It is also unfortunate that not all workers have been enrolled by their employers under the National Health Insurance Scheme and as such when they or their family members are sick, they have to pay out-of-pocket. Many states and local governments have refused to pay the contributory pension for their staff. It’s only the Federal Government that has ensured up-to-date payment of its staff contributory pension. What about housing schemes? How many low-cost housing units are available to Nigerian workers? In years gone by, some of the privileges enjoyed by government workers are car and housing loans to enable them to buy their own cars and build their own houses. These benefits are no longer made available to the majority of government workers.
Most disheartening is the non-payment of retired workers’ pensions and gratuities. The senior citizens are made to undergo harrowing experiences for years before their retirement benefits are paid to them. In the course of that time, many die leaving their next-of-kin to continue to wage the battle for the payment of the entitlements of their departed loved ones. This is sad! Truth be told, low wages and salary as well as delay in paying benefits of retirees are partly the reasons for widespread corruption in the civil service.
In the organised private sector, some of the unwholesome labour practices include casualisation, working overtime without getting paid for it and non-payment of compensation for injuries suffered in workplaces. It is an open secret that casualisation has been embraced by both foreign and local business owners as a cost-saving measure since casual workers can be easily dismissed from work and do not enjoy health, transport, and feeding allowances as well as pension when they leave the services of the company where they work.
This is now reportedly common practice in banks and other financial institutions as well as factories owned by some of the Asian investors in Nigeria. A friend of mine used to work for one of such companies in the Oshodi – Isolo axis of Lagos where he works 12 hours shifts. The standard labour law says a worker shall work for eight hours a day and 40 hours per week. Any work done above that should attract extra pay. However, in many Nigerian companies, this provision is observed in breach. Many enterprises operating in Nigeria also resist unionisation of their staff so that they will not be demanding better working conditions.
It is rather unfortunate that incessant strikes have been the hallmark of workers’ unions in the recent past. Last year, the Academic Staff Union of Universities embarked on an industrial action for eight months. In 2020, they were on strike for 10 months. The Nigerian Medical Association and the National Association of Resident Doctors have perpetually been at loggerheads with federal and state governments over welfare issues. Quite unfortunately this may not abate even with the coming of the new administration on May 29. Governor Godwin Obaseki of Edo State on 2023 May Day said federal and state governments may not be able to pay salaries beyond June this year unless the Central Bank of Nigeria prints more money (ways and means) or petrol subsidy is removed. There’s no gainsaying that non-payment of workers’ salaries will provoke another round of labour unrest. Thus, emigration otherwise known in local parlance as ‘japa’ may continue.
Very concerning for me is the high dependency ratio of Nigerian workers coupled with hyperinflation, insecurity and the high debt profile of the country under the outgoing Buhari regime. The low revenue of the government, corruption and oil theft, high unemployment rate and the country’s mono-culture economy combined to paint a gloomy picture for the incoming administration who will most likely meet empty treasury. The time now calls for sober reflection, sacrifices and understanding with our political leaders. The forecast is gloomy; the situation is daunting but definitely not insurmountable. I hope Asiwaju Bola Tinubu and the state governors will be able to turn the economy around in the shortest possible time so that Nigerian workers can start to enjoy a higher standard of living rather than a high cost of living.
Twitter: @jideojong
