Joe Ajaero, President of the Nigeria Labour Congress (NLC), has raised alarm over the rising cost of living caused by the recent fuel price hike, stressing how it is diminishing the earning power of Nigerian workers. Speaking during an interview, Ajaero explained the rationale behind the NLC’s agreement to a N70,000 minimum wage during recent discussions with the government, which took place at the Presidential Villa in Abuja. His remarks highlighted the heavy economic toll the fuel price increase is having on Nigerian households.
Ajaero revealed that organised labour had initially resisted any fuel price increase during negotiations with President Bola Tinubu’s administration. However, they eventually accepted the N70,000 minimum wage proposal after taking into account the broader economic challenges, particularly inflation and rising living costs, which have worsened following the removal of fuel subsidies.
He pointed out that the fuel price hike has made life even more difficult for workers, as it has led to a sharp rise in the cost of essential goods and services. “The price of petrol directly impacts transportation costs, food prices, and other daily necessities, making it harder for workers to meet their basic needs,” Ajaero said. Despite the N70,000 minimum wage, he argued, the purchasing power of workers has been severely undermined, as their earnings cannot keep pace with the surging inflation triggered by higher fuel prices.
The NLC President also expressed frustration over the government’s failure to deliver on its promises, particularly regarding alternative energy solutions. While the government had initially proposed the introduction of Compressed Natural Gas (CNG) to ease the burden of high petrol costs, Ajaero noted that the cost of converting vehicles to CNG, initially agreed at N300,000 per vehicle, was later inflated by the government to N800,000, placing an even greater strain on workers.
Ajaero further highlighted that the initial demand by the NLC and the Trade Union Congress (TUC) was for a N250,000 minimum wage, which they believed was necessary to protect workers’ purchasing power in the face of rising costs. However, after intense negotiations, the unions reluctantly accepted N70,000. Despite this concession, the situation has worsened with the continued fuel price increases, which Ajaero described as a “nightmare” for Nigerian workers struggling to survive.
He warned that if the government does not take immediate steps to reverse the fuel price hike and implement measures to alleviate the cost of living, the country could face increased unrest from frustrated workers. For many Nigerian families, the rising fuel prices have compounded an already difficult economic situation, leaving them with less disposable income and further widening the gap between earnings and the cost of basic necessities.
In conclusion, Ajaero urged the government to prioritise the welfare of Nigerian workers by addressing the fuel price crisis, stabilising energy costs, and ensuring a liveable minimum wage that reflects the true cost of living in the country.
