Former President Olusegun Obasanjo has criticized the newly approved N70,000 minimum wage, arguing that it falls far short of covering workers’ essential needs such as transportation, food, and housing.
In his latest book, Nigeria: Past and Future, Obasanjo expressed concerns over the role of labour leaders in the wage negotiations, accusing them of compromising workers’ interests for personal gain.
“The minimum wage does not even cover transportation costs for some workers, let alone food, housing, and family upkeep,” he wrote.
Obasanjo also condemned what he described as the growing politicization of labour leadership, claiming that some union leaders use their positions to negotiate political ambitions rather than advocate for workers.
“How did it happen that a trade union leader, while in office, was negotiating with a political party to be adopted as a gubernatorial candidate?” he questioned.
According to the former president, some labour leaders accept financial inducements to suppress agitation, weakening the unions’ ability to fight for workers’ welfare.
“Rather than negotiate in the interest of the workers, they do sabre-rattling, and they are called into the room, money in large amounts is stuffed into their hands, and they keep quiet,” he alleged.
He further criticized government officials for admitting to paying off labour leaders to prevent protests.
“How do we explain a senior official close to the President saying, ‘We have paid them to keep quiet and stop agitating’?” Obasanjo asked.
While acknowledging the right of individuals to pursue political careers, he argued that union leaders should not use their positions as a stepping stone to politics, as it creates a conflict of interest.
He suggested enacting a law requiring labour leaders to wait at least five years after leaving office before running for political positions.
President Bola Tinubu signed the N70,000 minimum wage into law on July 29, 2024, following extensive negotiations with organized labour and private sector representatives.
Initially, labour unions had pushed for a N250,000 monthly wage, but this was eventually reduced to N70,000 after deliberations concluded on July 18, 2024.
The previous minimum wage, set at N33,000, had been in effect since April 2019 under former President Muhammadu Buhari.
