Africa

Nigeria unions suspend strike for talks over new minimum wage

The Nigeria Labour Congress protests in Lagos on February 27, 2024, against the high cost of living and massive suffering following a hike in petrol prices and the devaluation of the Naira. (Photo: Marvellous Durowaiye/Reuters)

By Reuters | Tuesday, June 4, 2024

Unions and the government met late on Monday for talks where the government said it was open to a higher monthly minimum wage than the amount of 60,000 naira ($41.38) it had proposed.

Nigeria's main labour unions suspended an indefinite strike for a week on Tuesday to continue talks with the government over a new minimum wage after reforms in the West African nation caused inflation to spike, worsening a cost of living crisis.

Nigeria's two biggest union federations, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) shut down the national grid and disrupted flights across the country on Monday as they began an indefinite strike over the government's failure to agree to a new minimum wage.

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Unions and the government met late on Monday for talks where the government said it was open to a higher monthly minimum wage than the amount of 60,000 naira ($41.38) it had proposed, but a new amount is yet to be announced.

"After an extraordinary ... meeting today, it was decided that the ongoing strike be suspended for the next one week and we will continue negotiation with the government ... on minimum wage," TUC president, Festus Osifo, said.

Labour leaders met with their affiliates on Tuesday and Osifo told reporters that the government had been given a one-week 'grace' period to come up with an agreeable minimum wage.

President Bola Tinubu has been under pressure to reverse his decision to scrap a popular petrol subsidy that had kept fuel prices low but was costly on government finances.

Earlier, the head of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said it was holding off on recalling workers from offshore rigs pending the outcome of talks between the government and labour on Tuesday.

NUPENG represents workers across the oil and gas sectors, including upstream oil platform workers, fuel tanker drivers and pump attendants. Its decision on the strike is closely being watched by oil markets and could lead to a significant escalation of the unions' dispute with the government.

Nigeria, Africa's largest oil producer, relies on oil and gas for around 90 per cent of its foreign exchange earnings and about half of its budget.