- Increase Ranges from 25% to 35%, Falls Short of Organized Labor’s Proposal
In a move aimed at addressing the financial concerns of civil servants and pensioners, the Federal Government of Nigeria has granted approval for an increase in salaries ranging from 25% to 35% for employees on the remaining six Consolidated Salary Structures.
While this decision is welcomed, it falls short of the ambitious proposal put forward by organized labor earlier this year.
The approved salary structure encompasses the Consolidated Public Service Salary Structure (CONPSS), Consolidated Research and Allied Institutions Salary Structure (CONRAISS), Consolidated Police Salary Structure (CONPOSS), Consolidated Para-military Salary Structure (CONPASS), Consolidated Intelligence Community Salary Structure (CONICCS), and Consolidated Armed Forces Salary Structure (CONAFSS).
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It is noteworthy that sectors such as Tertiary Education and Health had already received their increments, which involved structures such as the Consolidated University Academic Salary Structure (CONUASS), Consolidated Tertiary Institutions Salary Structure (CONTISS), Consolidated Polytechnics and Colleges of Education Academic Staff Salary Structure (CONPCASS), Consolidated Tertiary Educational Institutions Salary Structure (CONTEDISS), Consolidated Medical Salary Structure (CONMESS), and Consolidated Health Sector Salary Structure (CONHESS).
According to a statement by Emmanuel Njoku, the Head of Press at the National Salaries, Incomes and Wages Commission (NSIWC), these salary increases will take effect from January 1, 2024.
In addition to the proposed wage increases, the Federal Government has approved pension increments ranging between 20% and 28% for pensioners enrolled in the Defined Benefits Scheme. This adjustment applies to pensioners associated with the six consolidated salary structures mentioned earlier and will be effective from January 1, 2024.
In March, the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) proposed a substantial raise in the national minimum wage, with a fervent demand of N794,000 for workers in the Southwest geopolitical zone, and N540,000 for the Southeast region.
The call for wage increases is not limited to the South West and South East regions, as other geopolitical zones also put forth proposals. In the South-South region, there is a request for N850,000, while the North West proposes N485,000. Similarly, the Federal Capital Territory (FCT) suggests N709,000 as the new minimum wage. These proposals reflect widespread demands for higher wages across various regions in Nigeria.
The clamor for salary increases comes against the backdrop of fuel subsidy removal and the floating of Nigeria’s foreign exchange market, which orchestrated a high rise in the cost of living.
With the impact underlined by skyrocketing inflation, which as of March stood at 33.20 percent, the majority of the country’s population is witnessing their spending power being eroded by the cost of goods and services, especially, food items. Food inflation rose to 40.1 percent in March, according to data published by the Nigerian Bureau of Statistics (NBS).
The labor unions described the N30,000 per month minimum wage as a “starvation wage”, demanding a substantial increase that will enable Nigerian workers to cope with the soaring cost of living.
“The national minimum wage is an issue that directly affects the livelihood of Nigerian workers. The minimum wage is the baseline level of income that workers are expected to earn and has far-reaching implications for economic growth, inequality, and social welfare,” Funmi Sessi, the chairperson of the Lagos State chapter of the NLC said.