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Labour Pushes for Cost of Living Allowance Amid Economic Hardship

The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has revealed that the Labour movement is set to demand a cost of living allowance from the government and employers. This follows the erosion of the value of the newly approved N70,000 minimum wage due to inflation and unfulfilled promises from the government. Ajaero noted that during the wage negotiation, the Labour unions had proposed linking wages to inflation and essential living costs, but the government was unprepared and dismissive.

Ajaero expressed disappointment that even the relief wage award introduced earlier had been discontinued, further worsening workers’ living conditions. He criticized the mismanagement of funds from the removal of fuel subsidies, which were redirected to state governments with little accountability or tangible impact. In some states, workers have not been paid, deepening the call for financial relief to mitigate the hardship.

On the theme of this year’s May Day, “Reclaiming the Civic Space in the Midst of Economic Hardship,” Ajaero explained that the civic and economic spaces are interconnected. Citizens, particularly traders and low-income earners, are increasingly aware of economic dynamics and are suffering from unpredictable price surges. The Labour leader emphasized that workers must be allowed to speak out freely about the economic hardship without facing repression.

He drew historical parallels to past resistance against harsh economic policies, like the Structural Adjustment Programme (SAP) protests led by students and unions during the Babangida era. Ajaero warned that suppressing civic expression in a democracy is dangerous, especially when economic conditions are deteriorating. He cited past and recent examples of citizens being silenced for protesting, emphasizing that public resistance is often a response to economic injustice.

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