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Organised Labour to demand cost of living allowance amid worsening economic hardship — Ajaero

The FrontierThe FrontierMay 8, 2025 2615 Minutes read0

•NLC President Joe Ajaero

The issue of wage review beyond the national minimum wage has become a trending discourse within the Labour movement, especially because of the increasing rate of inflation even before the implementation of the N70,000 new national minimum wage.

During May Day, it was also strident in the joint statement of the President of the Nigeria Labour Congress, NLC and the Trade Union Congress of Nigeria, TUC, counterparts, Joe Ajaero and Festus Osifo, respectively.

In a chat with Ajaero after the May Day celebration, he gives insight into this issue among others, hinting that the issue of cost of living allowance will be next battle with the government and employers, reports Vanguard.

During the May Day celebration, NLC and TUC were loud on their demand for wage review. What informed this demand few months after a new national minimum wage?

When we went for the negotiations of the new national minimum wage , we had in mind that we were going to get a clear agreement based on the cost of living. But we met a government team that was unprepared.

We asked how much of the N70,000 they wanted to pay would go towards transport? What about basic needs? How much is housing? We tabulated the costs of cooking gas, a bag of rice, and other essentials. The government team didn’t have any response. At that time, the situation was biting seriously, and we insisted on a living wage.

In the end, we didn’t get it. We wanted to benchmark it against inflation. If inflation increases, the wage should adjust automatically. But they still refused.

So, after a national strike, numerous protests, and an agreement with the President that if we accepted N70,000, they would not increase the pump price (which they reneged on), we reluctantly accepted the N70,000. Now, the value of that N70,000 has been completely eroded.

Even the wage award they gave as relief has stopped. You can see that we have every right to demand a cost of living allowance to address our current situation.

These are some of the things we are going to raise. If you look at the money they made from the so-called removal of the subsidy, the president has acknowledged that the money now goes to the governors. But the governors don’t seem to be doing anything with it. In some states, they are not even paying wages.

We have every reason to demand wage awards or some form of relief. This has happened before, where people were given foodstuffs, like rice, just to survive. It’s not a matter of right or wrong. The economy is in a dire state, and it is hurting the people.

Why did Organised Labour choose “Reclaiming the civic space in the midst of economic hardship” as theme for this year’s May Day celebration?

The question should have been, “If not this theme, what else?” If you look at the issues surrounding this theme—civic space and the economy—there is hardly anyone in this country, even outside the labour circle, who isn’t concerned about the economy.

These days, market women can give you a clear analysis of the rate of the dollar. Sometimes, you ask yourself, “Does the dollar affect the sale of amala and vegetables?”

It shows the extent to which they have tried to understand what is happening with our economy. You can no longer predict the price of any product until you get to the market.

The dynamics keep changing, inflation is rising, and Nigerians are suffering. As a labour leader, you get these complaints on an hourly basis, depending on what is happening. There is no way we could mark May Day without discussing the economy and insecurity. They are two key issues affecting our operations today.

Then there is the civic space. It is like when you beat a child and tell him or her not to cry. When the economy is haunting us, we need to shout out, to speak out. But when we cry out, we are met with threats and attacks if we go to the civic space to talk.

This is similar to what happened during the anti-Structural Adjustment Programme (SAP) protests. The Head of State then, General Ibrahim Babangida, said there was no alternative to SAP, and we told him there was an alternative.

Some of us were at the National Arts Theatre Iganmu, and other locations, providing alternatives. There was a debate that defeated him, although he still introduced SAP. Anytime there is a strong economic policy, especially one dictated by the International Monetary Fund (IMF) or the World Bank, the people will resist.

If the civic space is compressed, it becomes a problem. That is the hallmark of democracy. When economic policies affect people, they will voice out.

During that time, I was in the Student Union Movement. It was the National Association of Nigerian Students (NANS) that resisted SAP. It got to the point where Labour was emasculated and dissolved, and NANS was strong. When their (students) parents were suffering, it affected the students.

That was when protests erupted in places like University of Binin, UNIBEN, Ahmadu Bello University ABU, and other universities. Babangida came out and called it a civilian coup. He then announced he would create one million jobs. He created Mass Mobilisation for Self Reliance, Social Justice, and Economic Recovery, MAMSA, Directorate of Food, Roads and Rural Infrastructures, DIFRI, Peoples Bank, National Directorate of Employment, NDE, and even Road Safety in response to what NANS and others did.

But today, in a democracy, when people want to protest in Abuja, the police come out and say you cannot protest, even shooting at unarmed citizens. That is not how democracy works. When economic policies are too harsh, people usually protest. Many protests and reactions are tied to the economy.

If you look at the 1929 Aba Women Riot, it stemmed from the fear of taxation. There was an insinuation that the colonial masters wanted to tax even domestic animals. That made the women protest, saying this would not happen.

Though some Eurocentric historians now call it the Aba Women Riot, it was actually a protest that spread across various areas. When harsh economic policies are implemented, the people will resist.

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Ajaerocost of living allowanceeconomic hardshipOrganised Labour
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