“Nigerian workers poorer now despite minimum wage increment” — Oshiomhole

• Adams Oshiomhole, former governor of Edo State and labor leader, criticizes wage exploitation in Nigeria, asserting that workers now hold power despite the Federal Government’s increased minimum wage.

• Oshiomhole emphasized the detrimental effects of inadequate worker compensation on their livelihoods, national security, and economic productivity.

• Oshiomhole highlighted that unjust compensation for workers can lead to increased discontent and unrest, potentially causing destabilization of the country.

Adams Oshiomhole, the former governor of Edo State and a notable figure in labor leadership, has expressed profound concerns regarding wage exploitation in Nigeria. He asserted that, despite the Federal Government’s increase in the Minimum Wage, workers are still facing significant challenges.

He cautioned that insufficient remuneration not only jeopardizes the livelihoods of workers but also poses serious threats to national security and economic productivity.

Oshiomhole highlighted that unfair compensation can foster discontent and unrest among the workforce, potentially destabilizing the nation.

He urged for immediate reforms to rectify wage inequalities and to guarantee that all workers receive equitable compensation for their efforts. He believes that enhancing wages is crucial for cultivating a more efficient workforce and improving the overall stability of the country.

During the Distinguished Personality Lecture hosted by the National Institute for Security Studies (NISS) in Abuja on Wednesday, he reiterated that low wages perpetuate a cycle of economic distress, making workers more vulnerable to manipulation and radicalization.

He noted that when individuals struggle to fulfill their basic needs, they become increasingly susceptible to extremist ideologies and exploitation, which can have severe implications for national security.

The lecture, entitled ‘National Minimum Wage: Reward System and Productivity in Africa,’ was part of the Executive Intelligence Management Course (EIMC) 17, designed to enhance understanding of the interplay between wages, security, and productivity.

Oshiomhole contended that equitable wages are vital for enhancing worker motivation, efficiency, and overall economic development. He pointed out that while some employers in the private sector provide better wages than the government, job security remains a concern, as private sector employees can be dismissed with relative ease.

He asserted that while public sector employment provides greater job security, it is hindered by inefficiency and excessive staffing, resulting in unsustainable pay structures.

Reflecting on his background as a factory worker and union leader, Oshiomhole emphasized the longstanding conflict between labor and market dynamics, remarking that the establishment of trade unions and collective bargaining rights represents significant achievements.

He cautioned that in areas with elevated unemployment rates, workers often find themselves in exploitative situations, as employers take advantage of the surplus of job applicants.

He pointed out that the minimum wage, although designed to safeguard vulnerable employees, frequently falls short of addressing the increasing cost of living, thereby rendering many workers financially worse off over time.

In comparing Nigeria’s wage framework to that of other African nations, Oshiomhole drew attention to the considerable differences, highlighting that minimum wages in countries such as Seychelles and South Africa are markedly higher.

Oshiomhole also connected low wages to the increase in migration, noting that numerous Nigerians, including those with limited skills, are attracted to countries like the U.S. and Canada, where better wages improve living standards. He contended that insufficient compensation restricts workers’ purchasing power, perpetuating a detrimental economic cycle that hampers demand and growth.

The Senator, representing Edo North District in the National Assembly, stated: “Workers face fluctuating salaries and job insecurity, as employers can easily hire and fire employees.

“Despite paying union dues, workers often receive minimal support from trade unions, leading to questioning their effectiveness.

“Historically, the right to organize was suppressed, which limited workers’ ability to negotiate collectively. Industrial sabotage emerged as a form of protest against poor conditions.

“Collective bargaining and the right to strike are essential tools for negotiating fair wages and working conditions. Workers often resort to ‘work to rule’ when rights are restricted.

“Significant disparities exist between minimum and maximum wages across sectors, leading to dissatisfaction among workers. The wealthy often benefit from state protection, while the poor struggle.

“The minimum wage is designed to protect vulnerable workers but is often not enforced. Setting minimum wages too high can risk job losses, while setting them too low can lead to exploitation.

“Inflation severely impacts purchasing power, making it difficult for workers to maintain a decent standard of living. Historical comparisons show that many workers are poorer now than in the past, despite nominal wage increases.

“Comparisons with other African countries reveal that Nigeria’s minimum wage is low. Countries like Seychelles have significantly higher minimum wages, prompting calls for Nigeria to reassess its wage policies.

“Adequate wages are vital for enhancing purchasing power, which drives demand in a market economy. Underpayment leads to a vicious cycle of limited economic growth.

“The private sector generally offers better compensation than the public sector, but job security is often more stable in public employment.

“There is a need to revise economic strategies to foster job creation, improve infrastructure, and reduce inefficiencies within government agencies to combat poverty.”