Amidst Nigeria's 63rd independence day celebrations, President Bola Tinubu made a significant move, offering a temporary lifeline to lower-paid workers just days before major labor unions were set to launch an indefinite strike against the soaring cost of living.
"In response to our consultations with labor, business, and stakeholders, we're introducing a provisional wage increase to bolster the federal minimum wage without triggering excessive inflation," he declared.
For the next six months, the average low-grade worker will see a boost of 25,000 naira ($32), elevating their salaries to $71.
This initiative is a strategic response to the economic reforms instituted by his government, deemed essential to rejuvenate Nigeria's struggling economy.
Tinubu, who took office in May, embarked on bold reforms, ending long-standing fuel subsidies and liberalizing the naira currency to attract foreign investment. Although these moves were applauded by investors, the ballooning inflation and skyrocketing fuel prices have left citizens grappling to make ends meet.
Petrol, a vital commodity in Nigeria used by businesses and households alike, faces steep demand due to insufficient electricity production.
The announcement of a minimum wage increase was met with mixed reactions on the streets.
"Given the current economic climate, the additional 25,000 naira could make a substantial difference if utilized wisely. We need to prioritize our needs over wants," remarked Olabimpe Ibrahim, a makeup artist, expressing optimism.
In contrast, civil servant Joseph Ioryem disagreed, emphasizing that such an amount couldn't sustain an average family. "How much is a bag of rice? Almost 35-38,000 naira. A family of three or four can't survive on 55,000 nairas ($71) a month," he lament.
Tinubu's announcement, while a step forward, fell short of the unions' demand for a $260 monthly wage. Strikingly, during his address, the president chose not to address the imminent indefinite strike scheduled to commence on Tuesday, leaving the nation on tenterhooks.