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.
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
