How Nigerians can shift from agonising to organising

A recent article in The Guardian newspaper highlighted the growing challenges of rising living costs in Nigeria, using data from surveys on the daily expenses of an average Nigerian family. As of August, the estimated cost of a single meal for a family of four is N1,255, translating to a monthly food expense of N150,000. This is a troubling reality, especially when compared to the federal minimum wage of N70,000. The survey data shows that a family earning this amount cannot afford even a single meal per day, as the minimum wage is less than half of the monthly food cost required. In effect, a Nigerian family earning the minimum wage can only afford half a meal per day.

Given this context, the recent moves by Lagos State Governor Babajide Sanwo-Olu and Rivers State Governor Siminari Fubara to raise the minimum wage to N85,000 have been welcomed. Ondo State Governor Lucky Aiyedatiwa has also increased the minimum wage in his state to N77,000. Meanwhile, outgoing Edo State Governor Godwin Obaseki took the lead by implementing a N70,000 minimum wage for workers in his state even before the federal government and its negotiating team, including the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), finalised their recommendations.

While several other states have gone beyond the N70,000 mark, Lagos and Rivers States have set the highest standard with their N85,000 minimum wage. It remains to be seen whether the ongoing negotiations between the federal government and labour unions will result in a nationwide minimum wage increase to at least N100,000 per month.

As discussions around further wage increases continue, the government should also explore the possibility of shifting to bi-monthly salary payments instead of the current monthly system. In countries like the United States, bi-weekly payments are a standard practice.

Labour leaders in Nigeria should shift their focus from simply advocating for wage increases and start considering alternative approaches, such as adjusting salary payment cycles. While wage hikes remain a primary focus, the frequency of salary payments can also significantly impact workers’ financial well-being. Paying salaries bi-monthly could offer numerous advantages, both for employers and workers. Due to space constraints, I will focus primarily on the benefits to workers.

One of the key advantages of more frequent salary payments is that it enables workers to better manage unexpected expenses. A regular income stream reduces the stress of waiting an entire month for the next paycheck. This adjustment would also allow for more effective budgeting, aligning with bi-weekly expenses, and ultimately enhancing employee satisfaction. This boost in morale could reduce turnover rates among staff.

Transitioning to a bi-monthly wage payment system would be a significant change, and one I strongly advocate for in Nigeria. It could help mitigate the effects of the current rapid inflation, where the prices of goods frequently increase before the next purchase while salaries remain on a monthly payment cycle. This shift would move away from the traditional “30 days make a pay” approach and could better address the economic realities faced by workers.

Having made this seemingly simple yet crucial suggestion to reduce the salary payment interval from 30 days to 15 days, I sincerely hope that labor leaders and government officials consider adopting this practical approach as a means to support workers during these challenging times of high inflation.

Meanwhile, some critics have claimed that the Edo State governor’s decision to raise the minimum wage was politically motivated, aiming to secure votes for his preferred candidate in the governorship election on September 21. Similarly, accusations have been made against the Ondo State governor, suggesting that his N77,000 wage increase ahead of his re-election on November 16 was intended to win support from workers.

However, both governors have defended their actions, arguing that their motives are not politically driven but rather focused on the welfare of workers, which they see as a fundamental duty of their roles.

Regardless of the underlying motivations, the increase in the minimum wage—which has now doubled, with some governors adding even more—is ultimately beneficial for workers. Given that the cost of living has skyrocketed due to the significant devaluation of the naira and the removal of fuel subsidies, workers deserve this adjustment and more.

This situation has been made worse by the recent surge in fuel prices, which now range between N1,000 in Lagos and N1,400 in other parts of the country.
In light of this, Nigeria’s civil servants are in a difficult position, as the high fuel costs—a major driver of transportation expenses—have further escalated living costs, leading to widespread hardship among many Nigerians.

While the current spike in living expenses is undeniably daunting, Nigerians must strive to overcome the despair brought on by these challenges and reject a mindset of victimhood. Only by doing so can they achieve their full potential, which appears within reach and may be realised sooner than expected.

This outcome depends on maintaining the course of reform and enduring the sacrifices needed to secure a better future for everyone, rather than repeating the mistakes of the past—such as when General Ibrahim Babangida’s mid-1980s Structural Adjustment Programme (SAP) was abandoned midway, leading to further setbacks for the nation and its economy.

To avoid a repeat of protests like the #EndBadGovernance riots, I urge the current administration, which has committed to achieving a national reset and renewal, to revisit the N70,000 minimum wage. Increasing this wage would help ensure that workers can better cope with rising living costs.

It is encouraging that key government officials—Minister of Information and National Orientation Mohammed Idris Malagi, Minister of State for Labour Nkiru Onyejeocha, and Finance/Coordinating Minister of the Economy Wale Edun—are reportedly in discussions with labor leaders to ensure a smooth and conflict-free adjustment to the minimum wage. This adjustment is essential to help mitigate the impact of the recent fuel price hike, which has worsened the cost of living.

The previously agreed-upon minimum wage of N70,000 is no longer sufficient to support workers amid escalating living costs. These economic pressures have been intensified by the political and economic reset pursued by the current administration over the last 18 months, as highlighted in a recent survey by The Guardian.

In closing, it may be helpful to reflect on Jean-Paul Sartre’s view on hardship: “Life begins on the other side of despair.” This perspective suggests that if we view our challenges as opportunities for growth and preparation, we can better navigate the period following the removal of the petrol subsidy and other reforms.
Onyibe, an Entrepreneur, Public Policy Analyst, wrote from Lagos. He can be reached via: www.magnum.ng.