Why N1 million minimum wage may not be enough – NLC president

Beauty Osaze

President of the Nigeria Labour Congress (NLC), Joe Ajaero, has lamented the high cost of living occasioned by the removal of fuel subsidy by President Bola Tinubu.

Ajaero believes that the rising cost of living, even a minimum wage of N1 million may not be enough to meet the needs of families of workers.

Ajaero said this during the 13th quadrennial national delegates conference of the National Union of Textile Garment and Tailoring Workers of Nigeria in Abuja on Tuesday.

He said: “No matter the minimum wage we pay in this country today, if the issue of the devaluation of the currency continues, even if you pay N1 million, it will lose its value the following day. If we don’t check inflation, if you don’t check the exchange rate, if you pay workers N1 million today, we won’t be able to buy much.

“We need to look at all variables in the determination of the new minimum wage. No matter what you pay workers today, the value will go down in the next year.”

He lamented the poor power supply in the country, saying this is not good for business and national development.

The labour leader said 12 years after the sector was privatised by the administration of former President Goodluck Jonathan, the power supply has not improved.

He recommended a policy change to drive the power sector.

His words: “I was one of the persons who said privatisation was not the solution to the power crisis in the country. Twelve years later, we are worse off. While tariffs are on the increase, power supply is nosediving. We need some intervention in the sector because no sector can survive in this present situation.

“Each time we hear of billions in the power sector, it is not making any impact. Even after privatisation, the power sector has been subsidised with over N2trn. We need policies in the power sector because that is the driver of industrialisation and development. This is very important.

“In Nigeria today, there are many power plants that do not serve their purpose. This has affected us. That is why we need a new policy in the power sector that will assist everybody,” he added.