As Nigeria’s inflation continues to surge and the cost of essentials skyrocket, the Nigeria Labour Congress (NLC) is setting its sights on a new demand: the introduction of a cost of living allowance (COLA) for Nigerian workers.
This comes just months after Labour reluctantly agreed to a new national minimum wage of ₦70,000, a figure they now say has been rendered nearly worthless by rising prices and government inaction.
Minimum Wage Talks Fell Short of Reality
NLC President Joe Ajaero, speaking after the May Day celebrations, made it clear that the minimum wage agreement was never truly a win for workers. According to him, the labour unions entered negotiations with the hope of tying wages directly to the cost of living. They had expected that the wage would reflect current prices of food, transport, rent, and utilities. Instead, they were met with what he described as an unprepared government team that could not provide any breakdowns or defend their offer.
Ajaero recalled how Labour had tabled questions during the negotiations: How much of the proposed ₦70,000 would cover transport? What about food, housing, and healthcare? When they got no convincing answers, the unions pushed for a living wage indexed to inflation, a proposal the government turned down.
The situation worsened when the wage negotiations were coupled with a separate deal: if Labour accepted the ₦70,000 wage, the government promised not to increase fuel prices. That promise, Ajaero said, was broken shortly after.
COLA Demand Becomes Labour’s Next Big Fight
Now, with the real value of the minimum wage declining rapidly, Labour says it has every right to demand a cost of living allowance. Ajaero emphasized that not only has inflation eroded the purchasing power of workers, but the temporary wage relief (the wage award) granted to public sector workers as a buffer against fuel subsidy removal has also stopped. Meanwhile, he pointed out, the funds saved from the removal of fuel subsidies have been redirected to state governments, many of which are still struggling or refusing to pay salaries.
The frustration is deepening, not just within the labour movement but among Nigerians at large. Ajaero observed that even ordinary citizens like market women are now discussing macroeconomic issues such as the exchange rate. Prices of goods fluctuate unpredictably, and people can no longer budget accurately for groceries or transport. According to him, the economic pain is so widespread that ignoring it is no longer an option.
Labour Defends Civic Space in Hard Times
It’s against this backdrop that Labour chose “Reclaiming the Civic Space in the Midst of Economic Hardship” as the theme for this year’s May Day. For Ajaero, the link between civic space and economic well-being is direct and undeniable. When policies push people to the brink, they must be allowed to speak out. But increasingly, protests are met with clampdowns by law enforcement, making it harder for people to express grievances peacefully. He likened this repression to what happened during the anti-Structural Adjustment Programme (SAP) protests in the late 1980s, when students and labour activists resisted harsh IMF-driven economic reforms.
History Shows Resistance to Economic Oppression
Ajaero stressed that Nigerian democracy cannot thrive if people are denied the right to protest or demand better policies. He cited historical examples such as the Aba Women’s Protest of 1929 and student protests against SAP in the 1980s as reminders that economic injustice always triggers public resistance.
Workers Brace for Fresh Negotiations
For the NLC, the demand for a cost of living allowance is not just a wage issue, it’s about survival. Workers are demanding relief that reflects the current economic reality, not outdated figures negotiated under political pressure. As inflation rises, incomes must adjust. Otherwise, more Nigerians will be pushed below the poverty line.
Labour says it’s not backing down. With plans underway to raise COLA demands formally with the federal government and employers, Nigerian workers are gearing up for what could be the next major national labour battle.
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