Minimum Wage: Labour Pushes for Broader Worker Coverage

Organised Labour is intensifying efforts to ensure more workers benefit from the upcoming National Minimum Wage (NMW) as part of a strategy to alleviate poverty across the country.

The now-expired 2019 Minimum Wage Act covered employers with seven or more employees. However, the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) are advocating for broader coverage. They propose that all Nigerian workers, regardless of their workplace size, should be included under the national minimum wage.

A possible alternative is a graduated national minimum wage that would cover those currently excluded by offering them approximately 80% of the agreed minimum wage. While this is seen as a less favorable option, it is considered better than excluding these workers entirely.

Labour leaders stress the need for the wage Act to allow for periodic adjustments in line with the Central Bank of Nigeria’s targeted inflation rate and national productivity levels. This would help maintain real wage values over time, counteracting the impact of inflation, which is often overlooked in wage calculations based on historical data.

They argue that as the average national income rises, the minimum wage should also increase proportionately to prevent widening inequality and ensure a fair distribution of national wealth.

The NLC and TUC emphasize that any negotiated minimum wage must be realistic and sustainable, taking into account the capacity of employers to pay. This principle aims to avoid issues faced during the last wage review.

**Exploitation of Informal Sector Workers**

The NLC and TUC highlight the exploitation of workers in Nigeria’s informal economy, where women make up 75% of the workforce. This sector often operates outside legal protections, leaving workers vulnerable to harassment and exploitation. Government policies tend to prioritize revenue generation over addressing the basic needs of these workers, exacerbating their challenges.

To promote inclusive growth, the labour groups call for policies that formalize informal enterprises, granting them legal recognition and access to services. Gender-specific interventions are also needed to address the unique challenges faced by women in this sector. Empowering informal workers is seen as crucial to unlocking economic potential and fostering a more equitable future. The NLC and TUC urge all levels of government to address the issue of over-taxation on informal workers, arguing that revenue efforts should not further burden those already exploited.

This article is sourced from The Vanguard newspaper, with minor edits and adaptations by The Spectacles for clarity and readability.