Just In : Federal Government’s N100bn Wage Cut Sparks Nationwide Labor Protests (Details)
Labor unions criticized the Federal Government on Wednesday for reducing the supplementary budgetary allocation for wage awards to federal civil servants by N100bn, stating that this was not in accordance with the agreed terms. The Revised 2023 Supplementary Budget revealed that the government replaced the contentious N5bn presidential yacht votes with Navy barges, increased the defense budget from N476.54bn to N546.21bn, and allocated N20bn for the National Intelligence Agency’s capital supplementation
The recently approved N2.1tn 2023 Supplementary Budget faced controversy due to extravagant items, prompting amendments by the National Assembly. The four-month wage award, initially estimated at around N210bn, was revised to cost the Federal Government about N110bn.
Additionally, the Ministry of Defence’s budget increased by N69.67bn, with the Nigerian Navy receiving an extra N25bn, replacing the controversial N5.095bn for a presidential yacht with a self-propelled barge. The Defence Intelligence Agency and the Office of the National Security Adviser also received additional allocations.
Despite these adjustments, the purchase of official vehicles for the First Lady’s office valued at N1.5bn remained in the budget, and the education loan fund increased to N10bn from the initially allotted N5.5bn.
The decision to reduce the allocation for wage awards sparked criticism from labor unions. The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) warned that such actions would be resisted. The NLC stressed that the agreement was for the government to increase the wages of federal civil servants, not reduce them, while the TUC emphasized that the government must adhere to the agreement reached with organized labor.
Efforts to obtain an explanation from the Presidency regarding the reduced award were unsuccessful. The TUC emphasized that the government must fulfill the agreement reached with organized labor, as it was deposited in court. The NLC President, Joe Ajaero, had previously warned that the unions would revisit the agreement if the Federal Government failed to meet their demands.
Workers expressed concerns about the impact of escalating inflation on their finances, urging the government to provide fair compensation. The economic challenges were exacerbated by rising prices of food and increased transport fares, causing financial strain for civil servants.
