Obasanjo Slams New Minimum Wage as Insufficient, Accuses Labor Leaders of Betrayal

Former President Olusegun Obasanjo has expressed strong opposition to the newly approved ₦70,000 minimum wage, arguing that it falls short of meeting the essential needs of Nigerian workers. He highlighted concerns over the wage’s inability to cover basic expenses such as transportation, food, and housing, stressing that it does not reflect the rising cost of living in the country.

Obasanjo voiced his concerns in his newly released book, Nigeria: Past and Future, where he also criticized labour leaders for failing to genuinely advocate for workers’ welfare. He accused some labour leaders of prioritizing personal ambitions over the interests of those they represent, suggesting that many use their positions as a means to enter politics rather than fight for improved working conditions.

According to Obasanjo, some government officials have openly admitted to bribing labour leaders to suppress agitation for better wages and working conditions. He argued that this practice weakens the labour movement and leaves workers vulnerable to continued economic hardship. He described such actions as a betrayal that further demoralizes the Nigerian workforce.

To curb this issue, Obasanjo proposed a five-year ban on labour leaders transitioning into politics after leaving office. He believes this measure would help prevent conflicts of interest and ensure that labour representatives remain focused on advocating for workers rather than using their positions for personal political advancement.

The controversy over the new minimum wage follows its official approval by President Bola Tinubu on July 29, 2024. The ₦70,000 wage was the outcome of negotiations between the government and labour unions, which had initially demanded a monthly minimum of ₦250,000. The previous minimum wage, set at ₦33,000, was enacted by former President Muhammadu Buhari in 2019.

The debate over the adequacy of the new wage remains ongoing, with many workers and analysts agreeing with Obasanjo’s stance that it is insufficient given the country’s economic realities. Inflation and the high cost of living continue to put pressure on Nigerian households, making it increasingly difficult for many to afford basic necessities even with the wage increase.

As discussions on labour rights and wage structures continue, Obasanjo’s criticisms have reignited conversations about the role of unions, government policies, and the broader economic challenges facing Nigerian workers.