Most of the policies introduced by the current administration are exacerbating the economic difficulties faced by the country, the Trade Union Congress of Nigeria (TUC) has said.
The Congress said while the policies have brought about challenges, they have also brought about difficulties that Nigerians are facing.TUC President Festus Osifo said this during a programme, where he stated that the optimism conveyed in President Bola Tinubu’s New Year speech does not align with the current economic condition of the nation.
He said what the president has said was trying to inspire hope, “but that hope that he is trying to inspire, is not really in tandem with what we have currently in our economy.
“Today, our exchange rate is about N1,600, depending on the parallel market or the Nigerian Autonomous Foreign Exchange Fixing. This is part of what has brought about the high inflation that we have.
“We have been told that inflation is going to come down to 15 per cent by 2025, that our crude oil production is going to rise to about 2.06 million barrels per day. We have also been told about the balance of payments and how much we are going to borrow to finance our budget. So, all these that the president has said.
“When you now analyse them, what are the parameters that have been put in place? What are those details that have been put in place that we can see that support the declarations?
On the N70,000 national minimum wage, Osifo said it has already been eroded by inflation, making yearly reviews imperative. He said that organised labour, including the TUC and the Nigeria Labour Congress (NLC), is advocating a system where minimum wage increases are directly tied to yearly inflation rates.
He said that the proposal could create a systematic framework for wage adjustments, avoiding the prolonged negotiations and financial struggles workers face between reviews.
“What we are proposing is simple. Instead of waiting for three or five years to adjust wages, we should use yearly inflation data to ensure workers’ earnings remain reflective of economic realities. For instance, by January 15, 2025, when the National Bureau of Statistics releases the inflation rate for December 2024, there is a recommendation that a certain percentage as dictated by inflationary trend should be applied to the current N70,000 minimum wage.’ ’
This way, workers’ purchasing power remains stable,” he said.
Speaking further, the TUC President said: “We have started discussions on this issue. In 2024, we began pushing for this reform, and we will intensify our efforts in 2025. Yearly adjustments based on inflation data from the preceding year are not just logical but necessary to protect workers’ livelihoods.” (Guardian)
