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Nigerian workers are facing neglect from the government

Feature Article Nigerian workers are facing neglect from the government
JUN 3, 2022 LISTEN

Nigeria, Africa’s most populous nation, undertook a tumultuous journey to arrive at the current minimum wage for employees. According to the Nigerian Labour law, the minimum wage must be revised every five years. However, nearly eight years after its stipulated revision, this law was amended to arrive at N30,000 (72 USD) in a country where the majority live below the poverty line. From a seemingly humble beginning of a N125 per month pay package to the current N30,000, what may seem like progression to many could be a camouflaged package of regress.

While a significant portion of the masses languish in the pain of living below 1 USD a month, the upper echelons sing a different song. For the Nigerian lawmakers, a monthly compensation of about N1.5m (3,600 USD) and a quarterly office allowance of about N13 million (31,000 USD) is enough for their troubles. Recompense for the heavy head that wears the crown. What is more troubling is revealed in a recent report : the Nigerian life expectancy currently stands at 55 years. By quick maths and the light of the current economy, if the average Nigerian earns the minimum wage at the age of 30, he has a shot at about 25 years of work, equaling a total of N9,000,000 - or half of the yearly senatorial salary. Some are lucky to start work early, and others are lucky to earn more. At the end of the day, it is travelling different routes to the same destination.

Considering the immense earning disparity between social classes in the country, another factor rears its head - the standard of living. Picodi, an international e-commerce company, has, to no surprise, revealed that Nigeria’s minimum wage cannot cater to the minimum nutritional needs of one adult person in a month. The report estimates the value of basic food products for a healthy adult in a month at N40,980, a 15.89 percent increase compared to the beginning of 2021. Picodi does not show that the average Nigerian has long learned how to eat to stay alive and not healthy. But even this unhealthy coping mechanism has not proved effective in making life easier.

Nigeria has a knack for recycling difficult situations - in this case, the Naira’s constant dwindling in the economic rain. Since 2015, the naira has flirted with the dollar in what was dubbed “a substantial reevaluation for the foreign exchange policy.” The exchange rate skyrocketed from a unified 0.530 in 1980 to 416 in February 2022. In May 2022, it reached a record-breaking 610 peak against the dollar in the parallel market.

The substantial re-evaluation plan has achieved quite the opposite of its intended purpose.

Naturally, an increase in the standard of living often follows a bump in remuneration. However, the former seems to have a mind of its own. It should not be so. As is typical of Nigeria, in spite of the law, many state and local governments still pay the old N18,000 (43 USD) minimum wage.

If it took the Nigerian government eight years to implement a new compensation for workers, one can only wonder how much time it will take for a new one to be enacted. N30,000 clearly cannot sustain the average Nigerian. What happens when other utilities and bills need to be met?

An argument is that we have a weakened economy, and that there is no money. That all funds would be directed to a financial revamp. But it simply does not hold water. Last year, the National Assembly increased its budget to N13.6 trillion (32 billion USD), but the minimum wage remained the same? How absurd.

Although some applaudable efforts have been made to lift citizens out of poverty, they are simply not enough. Nigeria needs a revised law that allocates at least N50,000 (120 USD) per month to workers as reward for their labour. It is not asking for much - it is simply egging the country on the path of progress.

Claire Mom is a Nigerian journalist. You can reach her via email at [email protected] and Twitter @speakclairely_

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