Former President Olusegun Obasanjo has described the newly approved N70,000 minimum wage as “grossly inadequate.”
He argued that the new minimum wage fails to meet the basic needs of Nigerian workers, including transportation, food, and housing.
Obasanjo made these remarks in his newly released book, Nigeria: Past and Future, where he also accused labour leaders of prioritizing personal gains over the welfare of the workers they represent.
In Chapter 17 of the book, Obasanjo criticized trade union leaders, claiming they have abandoned their core duty of advocating for better working conditions. Instead, he alleged, many have been co-opted into political and financial deals that silence their activism.
“The minimum wage does not even cover transportation costs for some workers, let alone food, housing, and family upkeep,” Obasanjo wrote.
The former president lamented how some union leaders negotiate political positions while still in office, using their influence to secure personal ambitions rather than fighting for workers’ rights.
“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 asked.
Obasanjo claimed that since 2015, government officials have routinely bribed labour leaders to suppress agitation, deepening workers’ frustrations.
“Rather than negotiate in the interest of the workers, they do sabre-rattling, and they are called into the room, and money in large amounts is stuffed into their hands and they keep quiet. That has been the case since 2015. And, if anything, it is going from bad to worse.”
Obasanjo’s criticism extends beyond labour unions to government officials who openly admit to paying off union leaders to prevent industrial actions.
“How do we explain a senior official close to the President saying, ‘We have paid them to keep quiet and stop agitating’?” he wrote.
According to him, a demoralized workforce cannot contribute meaningfully to national development.
“You do not get the best from a frustrated and depressed worker.”
While acknowledging that union leaders have the right to pursue political careers, Obasanjo argued that their positions should not be used as stepping stones for personal advancement. He proposed a legal framework requiring labour leaders to wait at least five years after leaving office before engaging in politics, to prevent conflicts of interest.
President Bola Tinubu signed the N70,000 minimum wage into law on July 29, 2024, following negotiations with organized labour and the private sector. The final figure marked a significant reduction from labour’s initial demand of N250,000 per month.
Prior to this, Nigeria’s minimum wage was N33,000, signed into law by former President Muhammadu Buhari in 2019.
Despite the government’s decision, many workers and economists argue that even the new wage is insufficient, given Nigeria’s rising inflation and cost of living crisis.
Obasanjo’s remarks add to the growing debate about whether the government’s wage policy truly addresses the economic realities facing millions of Nigerians or merely serves as a temporary fix in a worsening situation.
