NewsOnline Nigeria reports that Former President Olusegun Obasanjo has criticized the ₦70,000 minimum wage, describing it as grossly inadequate to meet the basic needs of workers, including transportation, food, and housing.
Obasanjo made the remarks in his newly released book, “Nigeria: Past and Future,” where he accused labour leaders of betraying workers by prioritizing personal gains over the collective welfare of employees.
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The ex-president argued that the new minimum wage does not reflect the current economic realities in Nigeria.
“That is the situation in Nigeria in the third decade of the 21st century. The minimum wage does not even cover transportation costs for some workers, let alone food, housing, and family upkeep,” he wrote.
The former president suggested that a truly livable wage must take into account the inflation rate, cost of living, and purchasing power of Nigerian workers.
In Chapter 17 of his book, Obasanjo accused labour leaders of compromising workers’ interests for personal political ambitions.
“Workers need more attention than they are getting. It is their right, and they have been denied it for too long. They have become victims of those meant to protect their interests,” he wrote.
He further criticized union leaders who allegedly negotiated for personal benefits rather than fighting for fair wages and better working conditions.
Obasanjo further stated, “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? Because of their political ambitions, most union leaders are ineffective compared to the founding fathers’ expectations.”
According to Obasanjo, some labour leaders engage in ‘sabre-rattling’—making noise about workers’ welfare only to collect bribes behind closed doors and remain silent.
The elder statesman claimed, “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.”
‘Labour Leaders Are Paid To Keep Quiet’ – Obasanjo Alleges
Obasanjo further revealed that some government officials openly admitted to bribing labour leaders to prevent them from protesting against bad policies.
He said, “How do we explain a senior official close to the President saying, ‘We have paid them to keep quiet and stop agitating’? What contributions are such labour leaders and their unions making to the country’s progress? You do not get the best from a frustrated and depressed worker.”
He insisted that corruption within labour unions is worsening the plight of Nigerian workers, as many leaders prioritize personal enrichment over genuine advocacy.
While acknowledging that labour leaders have the right to join politics, Obasanjo argued that using their positions for political leverage while still in office is unethical.
He proposed a law that would bar labour leaders from contesting political positions for at least five years after leaving office, to prevent a conflict of interest.
On July 29, 2024, President Bola Tinubu signed the ₦70,000 minimum wage bill into law after months of negotiations with organised labour and private sector stakeholders.
Initially, labour unions demanded ₦250,000 per month, but the government countered with a ₦48,000 offer, before finally settling at ₦70,000.
Prior to this, Nigeria’s minimum wage was ₦33,000, signed into law by former President Muhammadu Buhari on April 18, 2019.
Despite the increase, workers and economic analysts argue that ₦70,000 remains insufficient, given the high inflation rate, rising cost of living, and depreciation of the naira.