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NLC Eyes Special Cost-of-Living Allowance as Inflation Bites Harder

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) are pushing for a cost-of-living allowance (COLA) to support workers amid rising inflation. This move comes just months after the โ‚ฆ70,000 minimum wage was approved.

During the May Day celebration, NLC President Joe Ajaero and TUC President Festus Osifo emphasized the need for wage adjustments. They argue that the new minimum wage agreed upon in 2024 had in effect been rubbished by higher cost of living.

โ€œWe asked how much of the โ‚ฆ70,000 they wanted to pay would go towards transport? What about basic needs? How much is housing?โ€ Ajaero stated. โ€œWe tabulated the costs of cooking gas, a bag of rice, and other essentials. The government team didnโ€™t have any response.โ€

The unions had hoped for a wage tied to inflation, ensuring automatic adjustments as prices rise. However, the government declined this proposal. Despite initial agreements, the value of the โ‚ฆ70,000 wage has diminished due to inflation and the removal of fuel subsidies.

Ajaero noted, โ€œEven 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.โ€

Reclaiming Civic Space Amid Economic Challenges

The theme for this year’s May Day, โ€œReclaiming the Civic Space in the Midst of Economic Hardship,โ€ reflects the unions’ concerns about limited avenues for expressing grievances. Ajaero remarked, โ€œThese days, market women can give you a clear analysis of the rate of the dollar.โ€ He questioned, โ€œDoes the dollar affect the sale of amala and vegetables?โ€



He further explained, โ€œWhen 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.โ€

Drawing parallels to past protests, Ajaero recalled, โ€œThis is similar to what happened during the anti-Structural Adjustment Programme (SAP) protests.โ€ He emphasized the importance of open dialogue in a democracy.

Looking Ahead: Labour’s Next Steps

The NLC and TUC plan to advocate for COLA and other relief measures. They argue that the funds saved from subsidy removal should benefit workers directly. Ajaero pointed out, โ€œThe president has acknowledged that the money now goes to the governors. But the governors donโ€™t seem to be doing anything with it.โ€

He added, โ€œIn some states, they are not even paying wages.โ€ The unions believe that without immediate interventions, the economic situation for workers will continue to deteriorate.

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