The Nigeria Labour Congress (NLC) has called on President Muhammadu Buhari to review the salaries of workers and recommend a 50 percent salary increase.

The labour union, NLC called for the salary review via a letter to the President “based on the realities on ground.

The Herald reports that the letter was sent on August 8, 2022 to the President as a response to the economic recommendations by the state Governors.

Petrol subsidy and retirement

The state Governors had called for the elimination of petrol subsidy, the retirement of civil servants from the age of 50, and the reduction of National Assembly constituency projects among other prescriptions.

NLC then blasted the Governors for seeking early retirement of workers, saying anyone promoting the idea of an early retirement “should be treated as enemies of your government.”

Instead of early retirement, the union asked the federal government to consider a further increase of worker salaries.

“While we commend you for your thoughtfulness for a wage increase, truth of the matter is that given the misfortune that has befallen the Nigerian populace, especially workers with fixed incomes, there is an urgent need for a massive intervention much deeper than the 22 percent,” the letter, signed by NLC President Ayuba Wabba, said.

“We would recommend a 50 percent salary review across the board given the realities on ground.”

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“Under this, if state governors strongly believe that age 50 is the problem, we demand that all governors, public office holders and politicians above 50, as a mark of good faith, should immediately step aside.

“Leading by example would spur public servants to take a cue,” the letter reads. Due to current global realities, the workers’ union asked the federal government to make a 50 per cent salary review.

“While we commend you for your thoughtfulness for a wage increase, the truth of the matter is that given the misfortune that has befallen the Nigerian populace, especially workers with fixed incomes, there is an urgent need for a massive intervention much deeper than the 22 per cent. We would recommend a 50 per cent salary review across the board given the realities on the ground,” the union said.

NLC urges FG to tax the rich

Speaking on the governors’ proposal on the increment of value-added tax (VAT) levels to 10 per cent with a timeline to further raise it to 15-20 per cent and introduction of a flat rate of 3 per cent, the union said it would adversely affect the underprivileged.

“These recommendations seek to make the poor pay more taxes while the rich pay little or nothing in clear violation of the well-known norm of the rich paying taxes to cover up for the poor.”

It urged the federal government to “raise taxes across the board for the rich, including increased taxes on luxury goods and lifestyles”. Speaking on the governors’ suggestion that foreign trips by MDAs, including budgetary-independent agencies, the union said it does not canvass for a total ban.

“Foreign trips ordinarily serve their useful purposes, but they have been abused by MDAs, especially budgetary-independent agencies such as the CBN, FIRS, NPA, MIMASA, NCC, NITDA and other blue-chips.

“This acts as a big drain on our resources. Accordingly, while we do not canvass for a total ban, there should be some control, a limit to foreign travels. The number should be pegged per year until we have a turn-around,” it added.

Subsidy removal

The union disagreed with the governors on petrol subsidy removal, saying it “could lead to unintended consequences which we would be better off without”.

“Truth is that the little benefit the average person in Nigeria enjoys could lead to unintended consequences which we would be better off without,” it said.

“The solution to subsidy and the ballooning deficits lies in domestic refining, effective management of our refineries, and creating an enabling environment for effective and efficient public sector leadership in the building and management of local refineries.”

“We do concede that a quick and enforceable resolution of the conflicts around ownership of gas in various entities is key to freeing up investment space for foreign direct investment and local businesses in the country.

“Sadly, prolonged inter-agency fighting has become a familiar feature of your government. You would need to put your foot down pending the paperwork,”  NLC said.