The President of the Nigeria Labour Congress (NLC), Mr. Joe Ajaero, revealed the understanding reached between organized labour and President Bola Tinubu before agreeing to the N70,000 minimum wage during discussions at the Presidential Villa in Abuja.
Speaking on Arise TV’s Morning Show yesterday, Ajaero explained that the labour unions rejected a proposed increase in the price of petroleum products in exchange for the N70,000 minimum wage offer.
He also mentioned that the unions, after agreeing with the president on promoting Compressed Natural Gas (CNG) as an alternative, had negotiated with experts who agreed to convert vehicles to CNG for N300,000. However, when they later met with government officials, the conversion cost was raised to N800,000, undermining the agreement.
It’s worth noting that the NLC and Trade Union Congress initially demanded a minimum wage of N250,000 but eventually accepted N70,000 from the president.
When asked whether President Tinubu had broken the NLC’s trust by increasing the fuel price, despite an alleged agreement, Ajaero narrated the events leading up to the offer. During their talks, there was a stalemate at N62,000, with some state representatives refusing to pay.
Ajaero recalled Tinubu telling him that labour was holding him back from further raising fuel prices, referencing higher prices in neighboring West African countries. Tinubu proposed paying a N250,000 minimum wage if the unions accepted a fuel price increase. The labour unions, however, refused to decide on the matter immediately, stating that they needed time to consult, after which they returned to discuss only the minimum wage, settling on N70,000.
In an interview with reporters, Ajaero emphasized that workers were feeling the effects of the fuel price hike and criticized the president for implementing such measures without adequate consultation. He explained that the unions accepted the N70,000 wage on the condition that fuel prices would not increase, and the current situation was making life harder for workers due to rising transportation costs.
He called for a reversal of the price hike, noting that such increases have compounded the struggles of Nigerians, and that governance should be more consultative.
During the Arise TV program, Ajaero also criticized the government for inflating the cost of converting vehicles to CNG. He noted that during initial talks in June 2023, the unions had agreed that CNG was a better alternative to petrol, with experts proposing a conversion cost of N300,000 per vehicle.
However, the government’s revised figure of N800,000 derailed the process, and the lack of infrastructure for CNG refueling stations has further complicated matters.
Ajaero also addressed the NLC’s decision-making process, explaining that any call for strike action would follow due procedure, involving consultations with relevant bodies like the Central Working Committee or National Executive Committee.
Meanwhile, an economist, Kelvin Emmanuel, expressed concerns over the lack of gas infrastructure in the country, particularly for transportation. He argued that the government’s CNG initiative was flawed, as it lacked the necessary infrastructure to make CNG a viable alternative to petrol across the country.
Various organizations, including the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Civil Society Organizations (CSOs), and the Peoples Democratic Party (PDP), have also called for an immediate reversal of the fuel price hike.