Editorial
Obaseki, Beyond The New Minimum Wage
In a move that has elicited both excitement and anticipation, the Edo State Government has announced a sub-
stantial increase in the minimum wage for its civil servants. Governor Godwin Obaseki made the declaration during the commissioning ceremony of the newly built Labour House. The new minimum wage, which has been raised from N40,000 to N70,000, represents a 75 per cent increase. The implementation of the new wage took effect from May 1, 2024.
This announcement has been met with widespread joy and relief among Edo State civil servants, who have long yearned for an upward review of their salaries. The increase is expected to go a long way in alleviating the financial challenges faced by many workers and improving their overall living standards. It is also seen as a testament to the Governor’s commitment to the welfare of his employees and his understanding of the economic realities faced by the workforce.
Recall that the upward review in the state’s minimum wage has been a forward-thinking decision. It all started with Senator Adams Oshiomhole, who raised it from N18,000 to N25,000 during his time in office. The current Governor jacked it up even further to N40,000. This gradual increase in the minimum wage shows a growing understanding of the necessity for adjusting wages to keep up with the increasing cost of living and to ensure a decent standard of living for all residents. The actions demonstrate a commitment to economic stability in the state.
The increasing inflation rates in Nigeria have sparked a dispute between the Nigeria Labour Congress (NLC) and the Federal Government over the national minimum wage. The NLC is pushing for a raise in wages to help workers cope with the rising prices, driven by the inflation rate reaching 33.2 per cent in March 2024, up from 31.7 per cent in February. Food inflation also climbed to 31.7 per cent in March from 30 per cent in February, adding to the urgency of the NLC’s call for a wage adjustment to match the cost of living.
The NLC and the Trade Union Congress (TUC) have jointly proposed a minimum wage of N615,000 for workers in the country. This demand was made after President Bola Tinubu, through Vice President Kashim Shettima, established a 37-member panel at the Council Chamber of the State House in Abuja on January 30. The panel is tasked with reviewing the current minimum wage and making recommendations for a new one.
Labour unions’ proposal is based on several factors, including the rising cost of living, inflation, and the need to improve the welfare of workers. They argue that the current minimum wage of N30,000 is no longer adequate to meet the basic needs of workers and their families. They also point out that the proposed N615,000 minimum wage is still significantly lower than the living wage, which is estimated to be around N800,000.
There is no formal response to the organised labour’s demand. However, negotiations are ongoing with the unions to find a compromise. The government may take into account the recommendations of the 37-member panel before deciding on the new wage. The outcome of the negotiations will greatly affect the lives of Nigerian workers. A higher take-home could give workers a necessary boost in income, helping them meet their essential needs and enhance their quality of life.
Governor Godwin Obaseki’s decision to increase the minimum wage for workers in his state is a testament to his commitment to improving the lives of the working class. This bold move demonstrates his understanding of the challenges faced by Edo civil servants and his determination to address their concerns. By ensuring that workers receive a living wage, Obaseki may not only be fulfilling his campaign promises but also setting a precedent.
Obaseki’s labour-friendly approach is a refreshing change from the past, when workers’ rights were often ignored. His willingness to engage with labour unions and negotiate a fair wage agreement even before a new national minimum wage is declared, shows that he values the contributions of the working class. The prioritisation of workers’ welfare will surely create a conducive environment for businesses to thrive and for the state to prosper.
In response to this generous act, Edo workers have a moral obligation to reciprocate by enhancing their productivity and demonstrating an unwavering commitment to their duties. They can justify the investment made in their welfare if they work harder. This enhanced productivity will benefit the state government and have a positive impact on the citizens they serve. Efficient and effective service delivery will foster a more conducive environment for advancement.
Beyond the commendable wage increase for workers in the state, the government has the responsibility to reposition the civil service for enhanced effectiveness and productivity. This strategic move would not only demonstrate the authority’s genuine concern for the well-being of its staff but also lay the foundation for a more efficient and responsive public service system.
Reforming the civil service entails implementing comprehensive reforms aimed at modernising its operations, streamlining processes, and fostering a culture of innovation and excellence. This can be achieved through initiatives such as digitalisation, capacity building, performance management systems, and merit-based promotions. These measures can empower civil servants with the tools and knowledge necessary to deliver exceptional services to the citizens of the state.
An effective and productive civil service is essential for the smooth functioning of any government. It is the backbone of governance, responsible for implementing policies, providing essential services, and ensuring accountability. The new minimum wage can create a workforce that is motivated, skilled, and committed to delivering optimal results. This, in turn, will enhance the government’s ability to meet the needs of its citizens and drive socio-economic development in the state.
In line with Obaseki’s actions, state governors should proactively review their employees’ salaries. It is unacceptable that many governors are still unable to meet the current N30,000 minimum wage requirement. This not only constitutes a blatant breach of the law but also signifies a grave betrayal of the trust entrusted upon them by the workers. Governors hold the pivotal duty of guaranteeing equitable pay for their employees to sustain a respectable standard of living. The failure of some of them to adhere to the minimum wage standards greatly contributes to the prevailing poverty and inequality in the nation.
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Making Rivers’ Seaports Work
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.
