Editorial
That FG’s Wage Review Initiative
Four years after the introduction of the National Minimum Wage (NMW) of N30,000 a month, the Federal Government has set up a monitoring team to identify states that are not implementing the salary. The Minister of Labour and Employment, Dr Chris Ngige, revealed this at the sensitisation workshop to kick-start the implementation strategy in Abuja.
Ngige also indicated that the government was working to increase workers’ allowances in the New Year without a commensurate increment in salaries in line with the current economic reality. He said a Presidential Committee on Salaries was carrying out a review of the existing salary structures and was expected to come up with salary adjustment early in 2023 to cushion the effects of the high inflation rate in the country.
According to the minister, no establishment can claim ignorance or non-involvement in reaching the collective bargaining agreement (CBA) on the national minimum wage. The minister, who was represented by his Special Assistant, Mrs Chinedu Clara Dike, insisted that ensuring compliance with the NMW Act was a sure way to ensure that workers were not short-changed and that productivity was not endangered.
The Labour Minister stated that a satisfied worker would surely contribute effectively and efficiently to the sustainability and growth of the enterprise. This, he said, would chip in national development and fewer disruptions in productivity due to industrial actions in any of its variations. He believes that the Sustainable Development Goals (SDGs) were a call to action to end poverty.
Also commenting, the Statistician General of the Federation, Prince Semiu Adeyemi Adeniran, who was represented by Adeyeye Elutade, maintained that a new minimum wage was due given that when the N30,000 minimum wage was implemented in 2019, inflation was 11.40 per cent and now inflation is 21.47 per cent (88.3 per cent increase).
For the Statistician General, the government intends to move 100 million Nigerians out of poverty in 10 years, but with the N30,000 minimum wage, it appears impossible to achieve the goal. Likewise, in 2019, the poverty level was 40 per cent as against the 63 per cent poverty level now, Adeniran pointed out.
But the Nigeria Labour Congress (NLC) Deputy President, Joe Ajaero, who reacted to the planned wage review in a chat with journalists, proposed a detailed meeting between all the stakeholders of the government, employers, and labour unions to review the minimum wage. Ajaero said the government must honestly consider the inflationary rates, cost of living and other factors before announcing its decision.
This move to ensure the implementation of the minimum wage across all states of the country is a most welcome development. Undoubtedly, the last wage increase has been enforced in breach in most states. And all efforts by the NLC and the Trade Union Congress (TUC) chapters in some states to secure full implementation have not yielded the required results.
Although the Federal Government’s action is commendable, we are worried that the step is coming almost late, many years after the last wage increase. We are equally concerned that this measure, arriving in the twilight of the President Muhammadu Buhari administration, may not achieve the desired result as electioneering campaigns are gathering steam and may distract the process.
Again, disclosing plans to raise workers’ pay less than six months before the end of the administration may be seen as politically motivated, and not driven by a genuine desire to advance the interest and welfare of workers. Besides, any salary increase that does not carry along relevant unions in the labour movement will not achieve its aim.
As Ajaero rightly indicated, given the skyrocketing inflation, stagnating wages and near economic meltdown, it is significant that the government does the right thing. And the proper thing is for the authorities to review wages strictly in line with the rising inflationary trend. The truth is the current wage level is far lower than expected, and cannot meet the expectations of workers.
The National Bureau of Statistics in its Consumer Price Index Report last month said inflation in Nigeria had continued to rise, hitting a new high of 21.47 per cent in November 2022. Similarly, the food inflation rate also increased to 24.13 yearly, showing a 6.92 per cent increase compared to 17.21 per cent recorded in November 2021. Most of the factors cited for the increase include importation induced by perennial currency depreciation and an increase in the cost of production and energy cost.
The World Bank recently said Nigeria might have one of the highest inflation rates globally in 2023, with increasing prices diminishing the welfare of Nigerian households. Indeed, some analysts, while projecting into the year, also predicted that the outlook for a stronger Naira against the Dollar in 2023 is bleak. This may indicate that a gloomy fortune awaits Nigerian workers this year.
Furthermore, the World Bank’s Senior Economist for Nigeria, Alex Sienaert, projects that debt service will take up 123.4 per cent of Nigeria’s revenue in 2023, adding that the expanding debt service-to-revenue ratio and the amount of Nigeria’s public debt, which will put more pressure on the local currency by 2023, are both causes for concern.
To mitigate the likely harsh effects, the pundits canvassed salary review and renegotiation of wages across the board to sustain the aggregate demands coming from workers and to strengthen their purchasing power at times like this. Of course, we think that a call for higher wages is appropriate. After all, the introduction of a new minimum wage at this time is not selfish or misplaced, especially considering the five-year lifespan of the current N30,000 coming to an end this year.
Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
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