TUC President Asserts: Minimum Wage Hike Won’t Fuel Inflation

In a recent interview with Channels Television, Trade Union Congress (TUC) President Festus Osifo challenged the notion that raising the minimum wage for public employees would exacerbate inflationary pressures.

Osifo argued that the significant increase in revenue allotment to states since May 2023 provides a solid justification for hiking the minimum wage.

Osifo pointed out that the revenue received by state governments from the Federation Accounts Allocation Committee (FAAC) has tripled since May 2023, indicating a substantial boost in available funds for essential services like education and infrastructure development. He emphasized the importance of compensating workers fairly, asserting that allocating a portion of increased revenue to employee wages is a responsibility that will not necessarily fuel inflation.

• Senate Plenary Descends into Chaos Over Seating Arrangements in Refurbished Chamber
• Nigerian House of Representatives Halts Electricity Tariff Hike Amidst Concerns
• Professor of Digital Twin Tech, Eke, to chair 20th Herbert Macaulay Memorial Lecture at UNN

“Improving worker compensation won’t inevitably make inflation worse,” Osifo stated confidently, underscoring the significance of prioritizing employee welfare amidst the current economic challenges. He highlighted the crucial role of labor in production and argued that allocating funds for wages is essential for sustaining productivity and promoting economic growth.

These remarks come at a time when Nigeria is grappling with financial hardships stemming from the removal of the gasoline subsidy and the unification of exchange rate windows. Against this backdrop, the federal government recently approved a salary increase for civil servants across various salary structures, ranging from 25 to 35 percent.

• President Tinubu Assures Nigerian Workers of New Minimum Wage Implementation
• Nigerian Army Promotes Senior Officers: A Celebration of Merit and Dedication
• Nigeria’s Inflation Surges to 25.80% in August 2023
• Minimum Wage Update: Nigerians to Receive ‘Survival Wage’ Enabling Better Livelihoods, Says Abbas”
• FG meets Labour Unions to Consider Proposals for New Minimum Wage

The push for higher wages gained momentum following the establishment of a 37-member tripartite committee on the minimum wage earlier this year. Organized labor submitted a demand for a significant increase in the minimum wage, calling for a raise to N615,000 to address the rising cost of living and improve workers’ standard of living.

As Workers’ Day approaches, the labor union has intensified its calls for the government to unveil the new minimum wage, emphasizing the urgency of addressing workers’ concerns. The outcome of this debate will not only impact the livelihoods of millions of workers but also shape the trajectory of Nigeria’s economic recovery efforts.