On Sunday, Nigerian President Bola Tinubu announced an interim wage increase for low-income workers and the introduction of buses running on natural gas to mitigate the impact of removing petrol subsidies, just two days before labor unions were set to begin an indefinite strike.
Tinubu had eliminated a decades-old subsidy during his inauguration in May, along with lifting foreign exchange restrictions. These actions have resulted in a significant rise in the cost of living and have stirred unrest among unions.
During a national broadcast commemorating 63 years of independence, Tinubu defended these reforms, emphasizing their necessity in steering Africa’s largest economy toward recovery.
“I am aware of the hardships that have arisen. I wish we did not have to face these challenges today. However, we must endure if we are to secure a brighter future,” stated Tinubu.
Following discussions with labor unions, businesses, and other stakeholders, federal government employees will receive an additional 25,000 naira per month for the next six months. Tinubu explained that this modest increase was deemed necessary to prevent a surge in double-digit inflation. This adjustment will raise the minimum wage in Nigeria from 30,000 naira to 55,000 naira ($71).
Nevertheless, labor unions are calling for the reinstatement of the fuel subsidy and had previously demanded a minimum wage of 200,000 naira.
Petrol plays a vital role in Nigeria, powering generators for millions of households and small businesses due to the national grid’s inability to provide sufficient electricity, averaging only 4,500 megawatts for a population of 200 million citizens.
Tinubu also outlined his government’s initiatives, including enhanced tax collection, increased investments in small businesses to boost employment, and the impending presentation of findings by a special investigator regarding what he referred to as a “den of malfeasance” at the central bank.
The Senate had confirmed Tinubu’s new nominee to head the central bank the previous week, replacing the former governor, who had been in the custody of state security agents since June.
