"N615,000 Minimum Wage Is Feasible! By Aj. Dagga Tolar"

From the earlier minimum wage of N30,000, Nigeria’s labor movement has now catapulted its demands to a proposed N615,000 minimum wage, marking a significant leap in the expectations and necessities of workers in the country. 

This announcement, expected to occur on May 1, 2024, during the Workers' Day celebration, highlights the sharp dissonance between the current wages and the cost of living. Such an increase seems audacious, yet it is a reflection of the stark economic realities that workers face, exacerbated by policies of deregulation and devaluation under the current administration.

The Tinubu regime has escalated its neoliberal agenda, prominently deregulating the oil and gas sectors and liberalizing the exchange rate. These actions have led to a sharp devaluation of the Nigerian currency, a spike in inflation to 34.5%, and a disturbing climb in food inflation at 49.1%. As a result, the poverty rate has worsened to 38.8%, with unemployment rates reaching historic highs. This economic backdrop makes the drastic hike in the minimum wage demand by the labor unions not just necessary but urgent.

Calculations for the new wage are rooted deeply in the day-to-day financial struggles of average Nigerian workers. For instance, the rise in electricity tariffs—from N65 to N225 per unit—means a typical household now faces monthly costs ranging between N30,000 to N50,000 for electricity alone. Adding in the necessities such as food, housing, healthcare, and education, the financial burden on a family of five easily justifies the proposed wage increase.

Despite these clear indicators, the government's approach, influenced heavily by business leaders and minimal labor representation, hints at a likely resistance to adopting the N615,000 figure. This underscores the fundamental disconnect between the governing elite’s perception of affordability and the stark economic realities faced by the populace. It raises a pivotal question of whether the proposed living wage is feasible within the Nigerian economic structure, dominated by neoliberal capitalist policies.

The Movement for a Socialist Alternative (MSA) argues vehemently that Nigeria can indeed afford a living wage, given its abundant natural and human resources. This stance is juxtaposed against the extravagant salaries and allowances of the political elite, which starkly contrasts with the pittance paid to those who actually drive the nation’s economy. The example of the former governor of Kogi state, Yahaya Bello, pursued by the EFCC over allegations involving N84.5 billion, illustrates the scale of potential governmental excess that could be redirected towards improving wages.

Labor unions, spearheaded by leaders like Joe Ajaero and Festus Osifo, have thus been pushed to demand a wage that matches the soaring inflation rates. However, history shows that every new minimum wage increase since 1981 has effectively been a decrease in real terms. For example, the 1981 minimum wage of N125, adjusted for inflation and currency devaluation, was far more substantial than what has followed it. The real value of wages has been in a steady decline, as evidenced by the continuous depreciation before any subsequent increases are enacted.

The MSA emphasizes that the solution does not lie within the confines of negotiation committees but through a robust and united labor movement. The upcoming Mayday celebration presents an ideal platform for rallying workers and preparing them to reject any insufficient government proposals. It is a call for the labor movement to reclaim its political voice through a party that genuinely represents workers' interests, potentially transforming the political landscape to favor the masses over the elite.

Furthermore, the MSA advocates for the nationalization of any corporations claiming incapacity to pay fair wages, proposing that these enterprises be managed democratically by workers to ensure transparency and fairness. The establishment of a Joint Minimum ACTION Committee at both national and state levels is also proposed to tackle governors who refuse to implement the new minimum wage, ensuring that the rights and welfare of workers are not sidelined.

In essence, the push for a N615,000 minimum wage is not just about adjusting numbers but fundamentally challenging and changing the economic policies and priorities of Nigeria. It represents a fight for a dignified existence versus mere survival, emphasizing that a living wage is not only necessary but also entirely achievable within the existing economic framework if there is a significant shift in governmental and corporate priorities.