In a significant development, the Federal Government faces an additional N315bn in wage bills over the next six months due to a newly introduced allowance for federal workers.
This follows a successful negotiation between Organised Labour and the government, leading to the suspension of a proposed nationwide strike for 30 days.
During a marathon meeting at the Presidential Villa in Abuja, the Minister of Labour and Employment, Simon Lalong, announced the suspension of the indefinite nationwide strike, stating that the NLC and TUC agreed to the 30-day pause. The Memorandum of Understanding reached will be filed with the relevant court as a consent judgment within one week.
Under the agreement, the Federal Government grants a wage award of N35,000 to all federal workers from September, pending the signing of a new national minimum wage into law. Additionally, the government commits to allocating N100 billion for high-capacity CNG buses and initiating an auto gas conversion program.
NLC President Joe Ajaero emphasized that the unions would revisit the agreement if the government fails to fulfill their demands. The Federal Government had initially proposed a N25,000 provisional wage increase, which was later increased to N35,000 after labor leaders rejected the former.
This development is expected to impact approximately 1.5 million federal workers, with the government projected to spend N52.5bn monthly for the next six months, totaling N315bn.
While this new allowance aims to mitigate the effects of the subsidy removal on petrol, concerns arise about its reach, considering the high percentage of working-age Nigerians without salary-paying jobs.
The agreement also includes the inauguration of a minimum wage committee, CNG bus provisions, and joint refinery visitations to assess rehabilitation status.
Organised Labour’s decision to suspend the strike demonstrates a temporary resolution, with the possibility of revisiting the agreement if commitments are not met by the government.
