Further strike action likely over Nigerian minimum wage but private-sector impact mostly limited to oil industry

Nigeria's main union coalitions yesterday (30 September) suspended a national strike which started on 27 September to demand a tripling of the minimum wage. Ayuba Wadda, president of the blue-collar Nigeria Labour Congress (NLC), called off the planned week-long strike after he said a firm commitment was received from the federal government to reopen talks through a tripartite committee on 4–5 October. However, Wadda added that the NLC expected the committee to conclude its work by making a firm recommendation to President Muhammadu Buhari. The NLC, supported by the white-collar Trade Union Congress and the PENGASSAN and NUPENG oil unions, wants the current minimum wage of NGN18,000 (USD50) per month raised to between NGN45,000 and NGN65,000 (USD125–180). During the two days of strike action on 27 and 28 September, most government offices and many banks and schools were closed, as well as the main ports. Few private-sector operations were affected, including oil and gas-related businesses. PENGASSAN said oil workers in "critical and essential services" should not join in.

Significance: President Buhari has accepted a big rise in the minimum wage is necessary to compensate for a major erosion of its real value due to currency devaluation and inflation, including significant increases in the price of basic goods such as fuel. Economic hardship and slumping oil revenues, however, have also affected both the federal and the state governments' ability to pay, with the latter still trying to clear months of wage arrears with federal help. Unions believe significant oil-price rises mean the federal government should subsidise a big rise. To avoid more politically damaging labour stoppages before February's general election, the tripartite committee is likely to meet union demands for a set figure and probable start date, but further strike action soon after the poll is highly likely to enforce swift application. That action would remain unlikely to significantly affect private-sector operations where workers are better paid, particularly oil and gas, where the relevant unions are largely offering statements of solidarity rather than calling out workers.