Labour to Push for Cost of Living Allowance Amid Rising Economic Struggles — Ajaero
The issue of wage review, particularly beyond the national minimum wage, has become a hot topic within the Labour movement. With inflation rates continuing to rise, even before the N70,000 new national minimum wage comes into play, there’s growing frustration and urgency around the need for better compensation.
This issue was front and center during May Day celebrations, as Labour leaders, including Joe Ajaero of the Nigeria Labour Congress (NLC) and Festus Osifo of the Trade Union Congress of Nigeria (TUC), made their voices heard in a joint statement. In an exclusive conversation with Ajaero after the May Day celebrations, we explored his thoughts on the growing pressure to secure a cost of living allowance as the next major battle with the government and employers.
The Push for Wage Review: What’s Behind It?
Just months after the government’s introduction of the N70,000 national minimum wage, many are asking: Why is there such a strong call for a wage review? Ajaero explains that when Labour first negotiated the wage, they had hoped for a fair agreement based on the actual cost of living. But when they sat down with the government team, they found them unprepared.
“We asked basic questions about the cost of living, how much of the N70,000 would go towards transport? What about basic needs like food, housing, and cooking gas? The government team didn’t have any clear answers,” Ajaero says, shaking his head. “At that time, the situation was already tough, and we insisted on a living wage.”
Unfortunately, despite their best efforts and a national strike, Labour ended up accepting the N70,000, under the agreement that the government wouldn’t increase the pump price of fuel a promise that was broken shortly after. Now, Ajaero argues, the value of that wage has been completely eroded by rising inflation.
“Even the wage relief they gave us has stopped. We have every right to demand a cost of living allowance now to cope with the current economic hardships,” he adds.
As he highlights, the government has made substantial sums from the so-called removal of fuel subsidies, but those funds aren’t reaching the people who need them. “The governors are not doing enough with the money, and in some states, wages are not even being paid,” Ajaero points out.
Why the May Day Theme Was So Important
When asked why organised Labour chose the theme “Reclaiming the Civic Space in the Midst of Economic Hardship” for this year’s May Day, Ajaero doesn’t hesitate. “The question should really be: What else could we have chosen?” he says. “Look at the economy, everyone is talking about it. Even market women can tell you exactly what the dollar rate is, even if they’re just selling amala and vegetables.”
He continues, noting that inflation is making it impossible to predict the price of anything in the market, and Nigerians are feeling the weight of it daily. “You hear complaints all the time. There’s no way we could have celebrated May Day without addressing the economy and insecurity they’re two of the biggest challenges we’re facing today.”
But Ajaero’s concerns extend beyond just the economic crisis. He also talks about the shrinking “civic space,” where it’s becoming harder for Nigerians to voice their frustrations. “When people speak out against economic hardships, they are met with threats, sometimes even violence. This is not how democracy is supposed to work,” he says, recalling the protests during the era of the Structural Adjustment Programme (SAP).
Back then, Labour fought against harsh economic policies, with the student movement (NANS) leading protests across universities. Ajaero remembers the struggle well, noting how such resistance eventually forced the government to create jobs and initiatives like Mass Mobilization for Self-Reliance and the National Directorate of Employment.
“Now, in this democracy, if people try to protest, they’re stopped before they even begin,” he says, frustrated. “The police say you can’t protest, sometimes resorting to violence. That’s not democratic.”
History of Resistance: Lessons from the Past
Ajaero recalls the 1929 Aba Women’s Riot as another example of how the people have always fought back against harsh economic policies. What started as a protest over the fear of taxation spread across many areas, ultimately forcing the colonial government to rethink their approach.
“When the economy is tough, people resist,” Ajaero insists. “That’s a lesson we need to remember today. It’s not about being right or wrong, it’s about survival. When people are struggling to feed their families, they will push back, and that’s what we’re seeing now.”
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