The Nigeria Labour Congress (NLC) has issued a firm ultimatum for state governments across the country to implement the newly enacted minimum wage by December 1, 2024, or face a nationwide strike action.

This directive was communicated in a statement signed by NLC President Joe Ajaero following the National Executive Council (NEC) meeting in Port Harcourt, Rivers State. In his address, Ajaero expressed disappointment over the delayed implementation of the wage adjustment, describing it as an affront to workers’ rights amid the deepening economic crisis.

“The NEC notes with deep frustration the persistent delay and outright refusal by some state governments to implement the 2024 National Minimum Wage Act,” Ajaero stated, signaling mounting discontent within the union. “This betrayal by certain governors and government officials across the country flies in the face of both legality and morality, as workers continue to be denied their rightful wages amidst rising economic hardship.”

He condemned these state governments’ inaction as a “blatant disregard for the law and the lives of millions of Nigerian workers, who are being exploited by the very leaders sworn to protect them.”

“All state Councils where the National Minimum Wage has not been fully implemented by the last day of November 2024 have been directed to proceed on strike beginning from December 1,” Ajaero announced.

To address this ongoing issue, the NLC has resolved to set up a National Minimum Wage Implementation Committee, which will oversee a nationwide assessment and mobilization campaign to educate citizens on the necessity of resisting this perceived attack on their dignity and rights.

Speaking on the larger economic situation, Ajaero urged the federal government to take immediate steps to mitigate the effects of inflation, which has led to unprecedented hardship for workers.

“Inflation continues to rise unchecked, with the costs of basic necessities spiraling beyond the reach of the average worker,” he observed, highlighting the urgency of the NLC’s demands. “Millions of Nigerians are being driven into destitution, forced to choose daily between feeding their families and seeking healthcare. Access to energy has become a mirage while workers become increasingly poorer even as they work longer hours to meet their other basic needs.”

He went on to paint a grim picture of Nigeria’s deteriorating health sector, adding, “As a result, nutritional diseases like Kwashiorkor and Marasmus have resurfaced in Nigeria.”

Ajaero’s address also took a critical stance on the issue of petrol pricing. He accused private players in the oil industry of manipulating fuel prices to exploit citizens, insisting that the current pricing of petrol is substantially above its true market value.

“NLC demands appropriate pricing of petrol and calls for the public domestic refineries in Port Harcourt, Warri, and Kaduna to quickly come back on stream to break up the monopolistic stranglehold the big players have on the industry,” Ajaero said.

Ajaero concluded by acknowledging the government’s provision of Compressed Natural Gas (CNG) buses to the Congress, but he stressed that this initiative is insufficient to address the transportation needs of Nigeria’s workforce.

“NEC -in- session expressed its appreciation to the federal government for providing Compressed Natural Gas (CNG) buses to the Congress but noted that they are grossly inadequate to address the huge gap in transportation,” he remarked, underscoring that the lack of a robust CNG infrastructure across the country could hamper the effectiveness of this initiative.

Private Sector Can’t Pay

However, against the backdrop of an unabating economic downturn, analysts have expressed concern that if the NLC holds firm on its December 1 ultimatum, the country could be bracing for a long and contentious strike that could disrupt both public services and private sectors for months.

With minimal commitment from several states to enact the new minimum wage, a protracted standoff appears inevitable. The NLC’s demand for a minimum wage increase, which has now been approved by the federal government, has received pushback from both the states and the private sector, with stakeholders citing economic struggles that are severely limiting their ability to comply.

In the private sector, companies already grappling with inflation, high operational costs, and other economic headwinds are struggling to pay salaries close to the newly approved minimum wage of N70,000. For instance, the healthcare sector, in particular, is buckling under this weight, with private hospitals reporting unprecedented financial strain due to spiraling costs of drugs and equipment.

According to Dr. Odia Festus Ihongbe, the Chairman of the Association of Nigerian Private Medical Practitioners (ANPMP), the economic challenges have forced many private hospitals to shut down, while others teeter on the edge of closure.

Dr. Ihongbe shared with DAILY POST that the dire state of the economy is leading Nigerians to forgo medical care entirely, often resorting to self-medication in a desperate attempt to save money. This practice, he revealed, is contributing to an alarming rise in organ failures and even fatalities.

He further elaborated on the severe challenges faced by private hospitals, which employ a significant majority of Nigeria’s healthcare workforce, yet lack the financial resources to match the new minimum wage.

“How will the private sector pay the N70,000 minimum wage?” he asked. Dr. Ihongbe pointed out that 80 percent of healthcare professionals, including doctors, nurses, and scientists, are employed in the private sector. He argued that without government support, private hospitals cannot afford to comply with the wage increase, especially considering the overheads they face. “If you have like eight to ten cleaners in your hospital, that’s already about N800,000. Who will pay that money?” he questioned.

The healthcare sector’s woes are compounded by the ever-increasing costs of medical supplies and equipment, driven by Nigeria’s volatile exchange rates. Dr. Ihongbe highlighted the example of the oxygen machine, which used to cost about N25,000 several years ago. Today, he disclosed, the same machine costs over N1.5 million, an expense that has led to significant financial strain on private hospitals.

“We buy drugs and other heavy equipment, and the prices of all these things are galloping every day,” he lamented, noting that private hospitals in Nigeria have been left to fend for themselves without any meaningful support from the government.