The bag isn’t big enough
Labour doesn’t think the ₦70,000 minimum wage is enough anymore
It’s another beautiful Friday, Big Brains! And the first day of the month too. It doesn’t get better than this.
- Margaret
Word count: ~1000
Reading time ~ 3 mins
Let’s get into today’s edition:
Labour is thinking of asking FG for another raise
Fubara believes that Wike is going too low
The Big Deal
Labour is thinking of asking FG for another raise
We’re sending you a hug if the wind of salary raises hasn’t touched your side this year. And if that hug wasn’t good enough, you’d probably be happy to know that Labour is thinking about pulling the federal government to the side and asking for another minimum wage raise. Not exactly the kind of raise you had in mind but a raise is a raise.
As Nigerians continue to deal with the effects of rising food prices, inflation, and 'reforms' that feel more like weapons fashioned against them, the Nigeria Labour Congress (NLC) is hinting at yet another request for an increased minimum wage.
One of the things that triggered NLC President Joe Ajaero to consider this idea so soon is the crazy fuel prices that are slowly becoming normalised. This doesn’t make sense, mainly because the government still hasn’t delivered on its promises to re-open the Port Harcourt, Warri, and Kaduna refineries. Like Ajaero said on Wednesday, October 30, the prospect of buying locally produced petrol instead of importing it sounds like a dream worth pursuing, especially if it means fewer price hikes.
He isn’t happy that Nigerians are stretched thin, just trying to make ends meet. To him, there are only two options Nigerians can choose from moving forward—we either come together and push back against the economic policies keeping everyone in survival mode, or we roll over and let those forces have their way. And if option one doesn’t work out, Labour is already thinking of how to ask Big T for a raise.
Why is this a big deal?
If you’ve ever wondered why the Nigeria Labour Congress seems to have the President’s ears to an extent, it’s because those guys are relentless like mad.
Labour thinking of another increase in the minimum wage isn’t a bad idea, but considering what happened the last time we went down that road, it is unrealistic for now. And if they do decide to go ahead with the request, regular Nigerians like us are likely going to suffer from Labour's efforts to ensure the government takes it seriously.
One of the strategies Labour likes to explore to get the government’s attention when it has a new request is nationwide strikes. But let’s be honest—another strike isn’t exactly what anyone’s hoping for. They disrupt people’s daily routines, leading to nationwide blackouts, airport shutdowns, and school closures—things that affect regular Nigerians more directly than anyone else. And with fuel being sold for as high as ₦1,500/litre in the North, maybe now isn’t the best time for more disruptions.
Another reason this request would sound ridiculous to FG now is that Labour had its chance to stand on business when it initially proposed ₦615,000 as minimum wage in May 2024. But it engaged in multiple haggling sessions with FG, and we ended up with the ₦70,000 minimum wage. Meanwhile, some governors still act like they are doing Nigerians a favour by implementing it.
Whatever Labour decides to do moving forward, we hope they exclude national blackouts because this country has had too many national blackouts for one year.
Fubara believes that Wike is going too low
Rivers State is going to be in a tough spot for a while because a federal court has issued an order that would stop the state’s monthly federal allocations temporarily. This order was triggered by the fact that Governor Fubara didn’t go through the constitutional route to present the state’s budget. How? The budget was presented to just five members of the House, excluding the 27 others who recently defected from the People’s Democratic Party to the All Progressives Congress.
Fubara believes that this has something to do with being ambushed at a presidential peace accord meant to mend the rift between him and his old Godfather-turned-political rival, Nyesom Wike, currently the Minister of the FCT. He also said some undisclosed political figures were gloating that they'd end his time in office in just a week. Spoiler: they didn’t.
Now, this isn’t the first time federal funds have been withheld from a state. In 2004, former President Obasanjo tried the same move with Lagos, withholding its local government allocations because he deemed the creation of new councils there as unconstitutional. Lagos fought back, and the Supreme Court ruled that withholding the allocations was unconstitutional, setting a pretty solid precedent. The court clarified that Section 162 of the 1999 Constitution doesn’t give the President—or anyone—the right to stop a state’s statutory allocations. So here’s the big question that everyone’s trying to figure out - does a Federal High Court actually have the power to do what it’s done to Rivers State or are we about to see another constitutional tug-of-war?
Is this even constitutional?
According to the 2004 court case ruling, the constitution says monthly allocations belong to the states. Seeing as we’re still using the same constitution – Section 162 makes it clear that these funds are important, with a specific sharing formula across federal, state, and local governments. Some political figures like Atiku Abubakar have argued that such court orders risk “setting Rivers on fire.” Others point to the Supreme Court ruling in 2004 as an undeniable precedent.
But Justice Joyce Abdulmalik, who issued the ruling, insists he’s in the right since Fubara's budget presentation wasn’t passed by the "legitimate" House of Assembly.
Unfortunately, Nigerians living in Rivers State have more to lose than Fubara or Wike. The state allocation is the primary funding source for basic state services, including healthcare, education, and infrastructure projects. Without it, Rivers may struggle to pay civil servants, maintain hospitals, keep schools running, or complete ongoing projects that people rely on daily. Doesn’t this country just piss you off sometimes?
The Big Picks
NEC Calls For Withdrawal Of Tax Reform Bills: The National Economic Council (NEC) has raised concerns about the Tax Reform Bills that President Bola Tinubu sent to the National Assembly.
Poor Nigerians Pay More Taxes Than 99% of the Rich:Oxfam, an NGO that addresses poverty and inequality in Nigeria, recently released a report that shows how people who earn about ₦40 million a year have been getting away with not paying taxes. Of the 130,000 high-earning Nigerians that fall into this category, only 40 were recognised as regular taxpayers.
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