Connect with us

Business

NNPC laments losses as PENGASSAN halts strike

Published

on

The Nigerian National Petroleum Company Limited, Group Chief Executive Officer, Bashir Ojulari, has lamented the crude and gas production losses resulting from the three-day strike carried out by the Petroleum and Natural Gas Senior Staff Association of Nigeria.

In a letter written to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and Nigerian Upstream Petroleum Regulatory Commission, Ojulari explained that the suspended strike led to 16 per cent oil production and 30 per cent marketed gas losses, while the nation suffered a 20 per cent power supply shortfall.

The national oil company’s letter, dated 29 September 2025 and titled ‘Impact Assessment of ongoing industrial action,’ was also sent to the National Security Adviser and the Director General, Department of State Services.

The industrial action caused by a rift between the union and the Dangote Refinery forced the shutdown of major oil terminals, gas plants and power facilities, leading to the deferment of 283,000 barrels of crude oil per day and 1.7 billion standard cubic feet of gas daily, choking off vital income streams from the country’s two biggest revenue sources.

This came as the leadership of the union announced the suspension of its nationwide strike against Dangote Petroleum Refinery following the intervention of the Federal Government, even as it cautioned that the truce remained temporary and could be revisited if the pending issues were not addressed.

The PUNCH reports that both PENGASSAN and the management of the 650,000 refinery have been at loggerheads.

The rift stemmed from allegations by PENGASSAN that the Dangote Refinery engaged in mass transfers and sackings of union members, while also replacing some Nigerians with foreign nationals, claims the company consistently denied.

The refinery’s management stated that the workforce reorganisation was due to operational requirements and not related to union activities.

The standoff escalated when the union embarked on an industrial action by halting gas and crude oil supplies to the refinery, raising the alarm over potential disruptions to the nation’s energy supply and economic stability.

The Federal Government intervened over concerns about the impact of the dispute, citing the risk of “adverse effects on the economy and energy security,” and convened high-level talks to resolve the impasse.

Detailing the financial losses in the letter obtained by our correspondent on Wednesday,  the NNPCL GCEO said industrial action resulted in significant production deferments.

Ojulari disclosed that, within the first 24 hours of the strike, as of September 29, 2025, production deferments stood at 283,000 barrels of oil per day, 1.7 billion standard cubic feet of gas per day, and more than 1,200 megawatts of power generation

According to him, this translates to around 16 per cent of national oil production, 30 per cent of marketed gas, and 20 per cent of electricity supply, with the impacts expected to intensify if the situation lingers.

“As of 29 September 2025 (within the first 24 hours of the strike), production deferments stood at approximately 283 kbpd of oil, 1.7 bscfd of gas, and over 1,200 MW of power generation impact. This equates to around 16 per cent of national oil output, 30 per cent of marketed gas, and 20 per cent of electricity generation. Should the situation continue, the impacts are expected to intensify, posing a material threat to national energy security,” the GCEO noted.

See also  Nigeria misses OPEC oil production quota again

The gas sector also recorded heavy losses during the strike, with about 1.7 billion standard cubic feet per day taken offline. Industry data showed that this volume translates to roughly 1.7 million Mcf of gas daily, which, when converted at 1.037 MMBtu per Mcf, amounts to about 1.76 million MMBtu each day.

He further explained that at least five scheduled critical maintenance activities have been affected, with knock-on effects likely to worsen deferments in subsequent periods. These include the USAN turnaround maintenance, AKPO GT-3 pigging, H2 well tests, annual compressor maintenance and SEPNU EAP IGE.

Ojulari also revealed that about 100,000 barrels per day of crude oil and 1.341 billion standard cubic feet of monetised gas across Joint Venture and Production Sharing Contract assets, which were due to be restored this week, have now been delayed.

Ojulari noted that while a limited number of non-unionised staff were still facilitating crude exports, operations remained heavily constrained.

He warned that ongoing and scheduled lifting operations across the terminals were likely to suffer further financial setbacks in the coming months, raising the risk of demurrage claims by international buyers.

At the Brass Terminal, for instance, the loading of an NNPC cargo that was close to completion was stalled after documentation could not be finalised due to the strike. The delay, he said, had already triggered demurrage costs.

The NNPCL boss stressed that the financial toll was mounting rapidly, with significant revenue losses projected at current deferment levels.

According to him, missed crude lifting and disrupted gas sales were placing the company’s cash flow under “immediate and compounding pressure.”

“It is our considered view that the current industrial action has impacts that extend beyond the Dangote Refinery. The disruptions pose systemic risks to energy supply, personnel and asset security and the wider economy. A sustainable solution is required to prevent such an extensive interruption of the overall energy security infrastructure and to safeguard national energy security and stability,” he concluded.

Meanwhile, the PENGASSAN leadership explained that the decision to temporarily suspend the nationwide strike was taken out of respect for federal institutions and government mediation efforts, stressing that it was not a show of confidence in Dangote.

Osifo said the union was taking the “moral high ground” by bowing to government persuasion despite strong doubts about the sincerity of the Dangote Group.

Speaking at a news conference in Abuja on Wednesday, Osifo stated, “We are only suspending, not calling off this strike. If any part of this agreement is broken, we will not give any warning. We will immediately resume our suspended industrial action.”

See also  ‘If I don’t give you electricity, don’t vote for me again’ – ADC reminds Tinubu of failed promise

He stressed that the industrial action was rooted in the fundamental right of workers to freedom of association, insisting that members joined the union “to secure better welfare and fair pay.”

According to him, PENGASSAN remains unsatisfied with aspects of the communique signed under the supervision of the Ministry of Labour, warning that the union’s patience should not be mistaken for weakness.

Osifo said, “Yes, we understand that Dangote does not respect the rules of engagement. Yes, we understand that Dangote wants to prove that he is always bigger than the rules and above the law. Yes, we understand that today, we still have some members working within the confines of the refinery.

“Yes, today, we still have some members working in some companies within the group. Yes, we know or we believe or we suspect that some of the things that the government has asked Dangote to do, that he’s going to slip in it and won’t do them just as he did to NUPENG. We have our suspicion.

“We truly don’t believe that he will keep to his own side of the bargain. We truly don’t believe that he will live up to expectations. We don’t believe. But because we have respect for institutions, because we have respect for government, because we have respect for processes, and because we have respect for procedures and because of those in government who sat up till almost 4 a.m. this morning to try and resolve this subject, the NEC has decided to listen to them. Even with our mutual suspicion that Dangote will not do what is right, even with our misgivings that the document did not clearly represent what we have asked for.

“But even with the shortcomings in the document, the National Executive Council of PENGGASAN has decided that they will go ahead to take the moral high ground, that we will go ahead to prove to the government that we are extremely patriotic people, that love this country more than any single individual, that we will go ahead to suspend the industrial action that we started on Sunday, 28th day of September 2025.”

He emphasised that the dispute was about the fundamental right of workers to freedom of association and fair pay.

“Remember, we are only suspending and we didn’t call off. We will be monitoring and following closely on any slip on the part of Dangote. If any part of this agreement, or any part of this communique as put up by the Ministry of Labour, is broken, we will not give any notice, we will not give any warning, and we will resume the suspended industrial action immediately.

“We have only suspended the industrial action in respect of the government of the land. As an institution, are we completely happy with what was provided? The answer for us is no,” he noted.

See also  Oil revenue row: Presidency defends Tinubu as legal titans split over Executive Order

Osifo further dismissed claims that the union embarked on its nationwide strike at the Dangote Refinery because of check-off dues.

He said such suggestions were “laughable” and did not reflect the reality of the dispute.

“Some people asked if it was because of check-off dues that PENGASSAN went on strike. We laughed,” he said. “The salaries being paid to the 800 workers at the Dangote Refinery, if you add all of them together, are less than what 20 of our members earn in companies like Chevron, TotalEnergies or ExxonMobil. So, why should we chase them because of check-off dues?”

He stressed that the workers’ union contributions were too small to motivate such a large-scale industrial action.

“Their salary is meagre. Even if you combine their entire check-off dues, I doubt it amounts to what we collect from the smallest branch of PENGASSAN in the country. So, let’s be serious. This fight is not about dues. It is about the freedom of association and the welfare of our members,” Osifo added.

The PENGASSAN boss explained that workers at the Dangote Refinery willingly joined the union because they wanted improved welfare packages and conditions of service comparable to global oil and gas industry standards.

“They fully subscribed to join PENGASSAN because they want their lives to be better. That is why we accepted them, to raise their conditions of service, their pay, and their rights as workers. Any other narrative is zero,” he said.

Osifo also rejected suggestions that the union’s action could undermine the Dangote investment.

“That we want to kill Dangote’s investment? We laughed. Which investment are we going to kill? Shell has had over 10,000 PENGASSAN members and invested more than $200bn in Nigeria’s oil and gas industry. Chevron, TotalEnergies, and ExxonMobil have invested close to $200bn. Dangote has invested just about $20bn. Did we kill Shell or Chevron? No. We helped them to grow,” he stated.

He emphasised that PENGASSAN members formed the backbone of Nigeria’s oil and gas industry, which contributes more than 90 per cent of the country’s foreign exchange earnings and funds the monthly Federation Account Allocation Committee distribution.

On the truce reached following the Federal Government’s intervention, Osifo stated that the union was not entirely satisfied with the communique signed in Abuja.

“If you see that communique, it was signed only by the government. We were not satisfied with some of its contents. After examining it, we saw several grey areas and loopholes. We raised all our concerns, and the government gave us assurances they would be on top of them,” he explained.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Nigerians spend N50bn on US visa applications

Published

on

Nigerians spent more than N50bn on US visa applications between 2023 and 2024, despite a sharp decline in approvals as Washington tightened immigration controls and increased scrutiny of applicants.

An analysis of the Intelpoint report, using data from the US Department of State, shows that 201,200 non-immigrant visas were issued to Nigerians between 2023 and 2024. At a standard application fee of $185 per applicant, Nigerians spent approximately $37.2m, equivalent to N50.7bn at an average exchange rate of N1,360 to the dollar.

Visa issuances declined by about 23 per cent, falling to 87,300 in 2024 from 113,900 in 2023, a reduction of 26,600 visas. The PUNCH could not obtain comparable figures for 2025 at the time of reporting.

Business and tourism travel dominated approvals in 2024, with B1/B2 visas accounting for 83 per cent of total issuances, while student visas (F1) represented about seven per cent. Exchange visitor visas (J1) and other temporary categories made up the remainder.

Africa’s most populous nation remained a significant source market for the United States, accounting for about 0.8 per cent of global non-immigrant visa issuances in 2024, the data showed.

Former President of the National Association of Nigeria Travel Agencies, Susan Akporiaye, said Nigerians’ travel behaviour is driven by more than economic conditions, noting a strong cultural inclination toward mobility.

“People would say it’s because of the economy, but I share a different view. Nigerians are generally migrants; they love travelling.

We are like the Chinese of Africa,” Akporiaye told The PUNCH.

The executive argued that most Nigerians who travel abroad return home, and only a small proportion remain outside the country permanently. “There is so much noise of Nigerians staying back. The ones who travel and return are far more than those who stay back. It’s not up to 10 per cent that don’t return,” she stated.

See also  2027 Presidency: PDP unveils zoning panel, dispels Jonathan, Obi talks

The decline in visa issuances comes amid a series of policy changes introduced after Donald Trump returned to the White House in January 2025, which have gradually tightened requirements for Nigerian applicants.

In July 2025, the US Department of State announced that most non-immigrant and non-diplomatic visas issued to Nigerian citizens would be restricted to single-entry permits valid for three months, with existing visas unaffected.

In August, applicants were required to disclose all social media usernames used over the previous five years on DS-160 forms, with officials warning that omissions could lead to visa denial or ineligibility.

Akporiaye also noted that travel demand cuts across income levels, from affluent individuals to ordinary citizens travelling for social events. “Nigerians like to explore. We travel for birthdays, weddings, and other ceremonies. I’m not talking about people like Dangote or Otedola, but ordinary Nigerians you don’t even know,” she said.

The expert, however, acknowledged that demand for US travel has softened relative to other destinations, citing operational and policy-related constraints.

“The demand has reduced for some destinations like the US, and it’s becoming worse now. Conditional requirements and operational changes at the US Embassy in Abuja have made access more difficult, including the consolidation of services in Lagos,” she stated.

“There are stories about visas being cancelled or Nigerians getting deported, and that makes people a bit sceptical. But other destinations are still booming.”

Further tightening followed in December 2025, when the US Mission in Nigeria said Washington expanded travel restrictions to include partial limitations on Nigeria and five other countries, effective January 1, 2026.

See also  UAE targets Nigeria for multi-billion-dollar investments

An executive at Travel and Tours Limited, Maureen Chimaobi, said securing a US visa has become increasingly difficult over the past year, with many first-time applicants facing steep odds despite completing all required procedures.

“Last year, getting a US visa drastically reduced, especially if you are a first-time traveller or first-time applicant. It’s almost a no-go area,” Chimaobi told our correspondent.

She noted that applicants continue to pay visa fees, schedule appointments and attend interviews, but approvals have become far less predictable. “You pay your visa fee, book your appointment and go for submission. Most of the time, they don’t give it,” the agent said.

The trend reflects growing concerns among travel operators about declining approval rates for Nigerian applicants, even as demand for overseas travel remains strong. Chimaobi said rejection levels have remained high throughout the period under review, particularly for individuals with limited international travel history.

The tougher environment is also influencing destination choices. More Nigerians are turning to countries where visa approvals are perceived to be more attainable, provided applicants can demonstrate sufficient financial capacity and present strong documentation.

“I think most countries still offer a 70 to 80 per cent chance of getting a visa, depending on the quality of your documents and your financial status,” Chimaobi revealed.

She identified the United Kingdom as one of the destinations with relatively stronger approval prospects, although she cautioned that British authorities have also hardened their assessment processes in recent months.

France and other countries within the Schengen area, once considered more accessible to Nigerian travellers, have become increasingly selective, especially toward first-time applicants, she added.

See also  Diezani lavished over N4bn in London luxury store – UK prosecutor

“Before now, France used to issue visas more easily, but most Schengen countries have become difficult over time, particularly for first-time travellers,” Chimaobi said.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Business

Petrol imports crash by N2tn to N87bn; see why

Published

on

Nigeria’s spending on the importation of Premium Motor Spirit, popularly known as petrol, plunged by over 96 per cent in the first quarter of 2026, marking a dramatic shift in the country’s fuel supply landscape and signaling the growing impact of local refining capacity.

Latest foreign trade statistics released by the National Bureau of Statistics on Monday showed that only N87.401bn was spent on the importation of Motor Spirit Ordinary, the official trade classification for petrol, between January and March 2026.

The figure represents a sharp decline of N2.184tn, or 96.15 per cent, compared to the N2.271tn spent on petrol imports during the corresponding period of 2025. The development is particularly significant as petrol, which had consistently ranked among Nigeria’s most imported commodities for years, was completely absent from the list of the country’s top traded products in the first quarter of 2026.

An analysis of the NBS data by our correspondent showed that petrol did not feature among the top 19 traded products with the rest of the world, Africa, or West Africa during the review period.

Instead, the leading traded products included crude petroleum oils and oils obtained from bituminous minerals, gas oil, durum wheat, machines for reception, conversion and transmission of data, used vehicles, motorcycles, agricultural seeders, medicaments, aircraft parts, butanes, petroleum bitumen, sugar cane, herbicides and fuel additives.

The report read, “The value of total imports stood at N13,619.33bn in the first quarter of 2026, representing a 18.17 per cent decrease from the value recorded in the corresponding quarter of 2025 (N16,644.42bn) and a 21.05 per cent decrease compared to the value recorded in Q4 2025 (N17,250.93bn).

“Analysis of Nigeria’s import trade reveals that China remained the leading source of imports in the first quarter of 2026, followed by the United States of America, India, Germany, and the United Arab Emirates. The most imported commodities during the quarter were petroleum oils and oils obtained from bituminous minerals (crude), gas oil, durum wheat, machines for the reception, conversion, and transmission of voice, images, or data, and used vehicles with diesel or semi-diesel engines.

See also  ‘If I don’t give you electricity, don’t vote for me again’ – ADC reminds Tinubu of failed promise

“The value of other oil products imported in Q1 2026 stood at N748.10bn, reflecting an 85.05 per cent decrease from N5,005.22bn in Q1 2025 and an 81.38 per cent decrease from N4,018.31bn recorded in Q4 2025.”

The latest import figure is also the lowest quarterly amount spent on petrol imports since at least 2022, according to available trade records reviewed by our correspondent.

Data from previous years showed that Nigeria spent N2.694tn on petrol imports in the first quarter of 2022. The import bill declined by N661bn, or 24.5 per cent, to N2.033tn in the corresponding period of 2023.

However, petrol import spending surged by N1.780tn in 2024 to N3.813tn, representing an increase of 87.6 per cent year-on-year. The figure later dropped by N1.542tn, or 40.4 per cent, to N2.271tn in the first quarter of 2025 before plunging by a massive N2.184tn, or 96.15 per cent, to N87.401bn in the first quarter of 2026.

The latest figure means that for every N100 spent on petrol imports in the first quarter of 2025, only about N4 was spent during the same period in 2026. The NBS data also highlighted the changing structure of Nigeria’s petrol import trade profile over the years.

According to the report, the total trade value involving the petroleum product stood at N7.705tn in 2022. This declined marginally by N194bn, or 2.5 per cent, to N7.511tn in 2023.

Trade value, however, more than doubled in 2024, rising by N7.907tn, or 105.3 per cent, to N15.418tn, the highest level during the period under review. The figure subsequently fell by N5.045tn, or 32.7 per cent, to N10.373tn in 2025, reflecting changing trade dynamics in Nigeria’s downstream petroleum sector.

See also  Court orders NNPC to disclose details of $3bn crude-for-cash loan

The PUNCH reports that the sharp reduction in petrol imports reflects the increasing contribution of domestic refining facilities to fuel supply, reducing Nigeria’s dependence on foreign suppliers and helping conserve foreign exchange.

For decades, Nigeria relied heavily on imported petrol despite being Africa’s largest crude oil producer, owing largely to the poor performance of state-owned refineries and inadequate domestic refining capacity.

The trend began to change following investments in local refining and the gradual increase in output from domestic refineries, which have reduced the need for large-scale fuel imports.

The sharp decline in petrol imports in the first quarter of 2026 comes amid growing domestic refining capacity, particularly from the operations of the Dangote Petroleum Refinery, which began supplying petrol to the Nigerian market in 2024.

For decades, Nigeria relied heavily on imported Premium Motor Spirit despite being Africa’s largest crude oil producer. The country’s state-owned refineries operated far below capacity for years, forcing marketers and the Nigerian National Petroleum Company to spend trillions of naira annually importing fuel to meet domestic demand.

The commissioning of the 650,000 barrels-per-day refinery in Lekki, Lagos, marked a turning point in the downstream petroleum sector. Since commencing petrol production, the refinery has steadily increased output, supplying marketers, industrial users and fuel distributors across the country.

In January, the Nigerian Midstream Downstream Petroleum Regulatory Authority reported that Dangote refinery supplied an average of 40.1 million litres of petrol daily, accounting for 61.78 per cent of Nigeria’s petrol supply. Imported fuel contributed 24.8 million litres per day during the month.

See also  Nigeria, Benin deepen cross-border security, trade cooperation

It increased significantly in February as imports collapsed. The refinery supplied about 36.5 million litres per day, while imports dropped to roughly 3.1 million litres per day, meaning locally refined fuel accounted for more than 92 per cent of national supply.

According to the NMDPRA March fact sheet, Dangote remained the sole domestic supplier of petrol, supplying 34.2 million litres per day. Imports rose slightly to 5.9 million litres daily, bringing total supply to about 40.1 million litres per day.

Supply rebounded strongly in April. Dangote supplied 40.7 million litres per day to the domestic market, while imports declined further to 3.7 million litres daily. Total petrol supply stood at 44.4 million litres per day, giving the refinery a market share of approximately 92 per cent of locally consumed fuel and about 80–92 per cent of overall supply, depending on the methodology used.

The disappearance of petrol from the list of top imported products is expected to strengthen arguments that local refining is beginning to alter Nigeria’s trade patterns, lower import dependence and reshape the country’s foreign exchange requirements.

The sustained reductions in fuel imports could improve Nigeria’s trade balance, reduce pressure on the naira and retain more value within the domestic economy, provided local production continues to meet demand.

The first-quarter data therefore represents one of the clearest indications yet of a major shift in Nigeria’s downstream petroleum sector, with petrol imports falling to levels not seen in more than four years.

Continue Reading

Business

Nigerian workers deserve a living wage; read details

Published

on

THIS is a debate that never goes away for too long: what is due to Nigerian workers? The renewed agitation over workers’ wages, triggered by a fresh Nigeria Governors’ Forum proposal to raise the national minimum wage to N100,000 per month, only confirms that the country is trapped in an endless cycle of wage adjustments that inflation quickly renders meaningless.

This means that the issue is not just about the size of the minimum wage. Rather, it is about whether Nigerian workers can afford to live with dignity.

That is why the conversation must shift from a statutory minimum wage to a genuine living-wage regime – and a stable economy.

The proposal by the Chairman of the NGF, Governor AbdulRahman AbdulRazaq, has already been rejected by organised labour.

The Nigeria Labour Congress, through its spokesman, Benson Upah, dismissed N100,000 as grossly inadequate and argued that, given current realities, a realistic wage would be closer to N1 million per month!

The Federal Workers Forum also condemned the proposal as a “Greek gift,” insisting that it bears little relationship to prevailing economic conditions.

While the NLC’s N1 million demand may appear excessive to many, the underlying argument deserves serious attention.

The current N70,000 minimum wage approved in July 2024 has already been overtaken by inflation. Like every previous wage increase in Nigeria’s history, its real value has been rapidly eroded.

The country’s minimum wage trajectory elucidates this. It rose from N18,000 in 2011 to N30,000 in 2019 and then to N70,000 in 2024. Yet each increase was followed by soaring inflation that wiped out most of the gains.

It is alleged that some states have yet to implement the minimum wage for grassroots workers, local government employees and primary school teachers.

Dataphyte estimates that the real value of the previous N30,000 wage had collapsed to barely N11,708 by mid-2024. The current N70,000 wage is clearly following the same path.

See also  Tinubu’s executive order blocks N2tn NNPC fees

The CBN reported that workers lost N2.79 trillion in purchasing power in 2024 alone due to inflation. That explains why workers who celebrated the 133 per cent wage increase in 2024 now find themselves struggling to survive less than two years later.

Nothing illustrates the crisis more vividly than the National Bureau of Statistics and Global Alliance for Improved Nutrition Cost of a Healthy Diet data.

According to an analysis by The Whistler, a healthy diet for one adult now costs an average of N1,541 per day or N46,230 per month, excluding meal preparation costs.

This means that a worker earning N70,000 is left with just N23,770 after feeding only himself.

For an average Nigerian household of 5.06 persons, the monthly cost of a healthy diet rises to N233,923 — equivalent to 334 per cent of the current minimum wage.

In other words, the average worker cannot afford the minimum nutritional requirements recommended by global health standards.

Even the governors’ proposed N100,000 wage would still leave most families far below the subsistence level. It is therefore difficult to dispute labour’s argument that Nigeria’s wage structure has become detached from economic reality.

However, raising wages alone cannot solve the problem.

The organised private sector has raised legitimate concerns about its ability to pay across the board.

The president of the Lagos Chamber of Commerce and Industry, Leye Kupoluyi, said the private sector should not be compelled to pay the same wage level as the government if businesses could not afford it.

The Director-General of the Nigeria Employers’ Consultative Association, Adewale Oyerinde, points out that the process for arriving at a National Minimum Wage is “rooted in widely acclaimed tripartite negotiations and consultation and not just political statements, without any empirical data to back up the quantum of increase.”

The Centre for the Promotion of Private Enterprise warned that many businesses are already struggling under crushing energy costs, logistics bottlenecks, foreign exchange challenges, multiple taxation and weak consumer demand. All this needs to be addressed.

See also  Naira hits two-year high at 1,347/$

Indeed, any wage increase that is unsupported by productivity growth and economic reforms risks fuelling another inflationary spiral. Businesses facing higher wage bills often pass costs to consumers, thereby worsening the very inflation the wage increase seeks to offset.

Nigeria must therefore avoid the false choice between workers’ welfare and business survival.

The real objective should be a living-wage framework tied to measurable economic indicators and supported by aggressive cost-of-living reduction policies.

This is the model increasingly adopted across many countries. In South Africa, the national minimum wage is approximately 28.79 rand per hour, translating to well over N250,000 monthly at prevailing exchange rates.

Algeria’s minimum wage is around 20,000 dinars (N204,000) monthly, while Egypt recently increased its public-sector minimum wage to 7,000 Egyptian pounds (N184,000).

Kenya’s minimum wage varies by sector and location, but the average of 16,113 Kenyan Shillings (N169,500) remains significantly higher in purchasing power terms than Nigeria’s.

Nigeria should not be setting wage policy as though inflation were a temporary inconvenience.

Food inflation remains the principal driver of household hardship, standing at 16.06 per cent YoY and higher than headline inflation of 15.69 per cent as of April.

Massive investments in agricultural productivity, rural roads, storage infrastructure and security in farming communities are urgently needed.

The absurd situation where healthy diets are more expensive in some rural communities than in urban centres because of poor roads must end.

The government must also address transport costs through investments in rail, inland waterways and public transportation systems.

Electricity tariffs remain a major burden on both households and businesses. Lowering energy costs would immediately improve living standards while enhancing business competitiveness.

Investments in health by ramping up health insurance enrolment and better access to quality care, and in education, via massive infrastructure improvements and teacher recruitment, will reduce household expenditure on these essentials.

See also  Court orders NNPC to disclose details of $3bn crude-for-cash loan

Furthermore, labour’s argument regarding improved government revenues deserves scrutiny.

Since the outbreak of conflict in the Middle East, higher oil prices have boosted Nigeria’s earnings. It is estimated that the windfall has added more than N5 trillion to government coffers.

Whether that figure is an exaggeration or not, governments are receiving historically high FAAC allocations, averaging over a 50 per cent surge for states in 2025 and all tiers sharing up to N2 trillion in 2026.

Nigerians deserve to see some direct benefit from these gains through targeted subsidies for food production and transportation, public transit and essential services.

More fundamentally, wage determination should no longer depend on sporadic political negotiations every few years.

The National Minimum Wage Act should be amended to provide for automatic annual adjustments linked to inflation, productivity and cost-of-living indicators. Such a mechanism would prevent workers from suffering prolonged erosion of purchasing power before the government responds.

Above all, policymakers must remember that they are insulated from the hardships confronting ordinary citizens.

Governors, legislators, political appointees and senior public officials enjoy humongous allowances, subsidised accommodation, official vehicles, security details and generous expense accounts.

They do not queue for transport. They do not worry about school fees after buying food. They do not feel inflation in the same way as the average worker.

That disconnect explains why debates over N70,000, N100,000 or even N1 million often miss the central issue.

The goal of wage policy is not simply to keep workers alive so that the job is done. It is to ensure that honest labour can provide a decent standard of living.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

INSTAGRAM

Continue Reading

Trending