IMPI Faults NLC’s Call for Wage Awards, Improved Allowance

IMPI Faults NLC’s Call for Wage Awards, Improved Allowance

JOEL OLADELE, Abuja

The Independent Media and Policy Initiative (IMPI) has criticised the Nigeria Labour Congress (NLC) over its call for wage awards and improved allowances for workers, describing the demands as ill-timed and potentially harmful to long-term economic stability.

In a policy statement signed by its Chairman, Omoniyi Akinsiju, the think tank argued that the labour union’s position was based on projections of a possible oil revenue windfall from the ongoing Middle East crisis, which it said should be channelled into broader economic development rather than immediate consumption.

Organised Labour had urged the Federal Government to deploy proceeds from the anticipated oil price surge to cushion rising living costs, including the payment of wage awards, new allowances for civil servants, and tax relief for low-income earners.

But IMPI disagreed, warning that such a move would amount to prioritising short-term benefits over sustainable growth.

“Oddly enough, this plethora of demands by the NLC was predicated on the recent projections by the Nigeria Economic Summit Group (NESG), signifying that the country may gain an estimated N30 trillion oil windfall from the ongoing Middle East crisis. We consider this proposal rather inappropriate,” the statement said.

The group added, “One cannot eat the seeds and expect to reap a harvest,” stressing that resources meant for growth should not be consumed prematurely.

According to IMPI, sharing the projected windfall among workers would exclude a large majority of Nigerians, noting that formal sector employees account for only a fraction of the workforce.

“The fact of the matter is that formal workers represent just about 15 per cent of Nigeria’s total workforce, with over 85 per cent engaged in the informal economy. With a total labour force exceeding 113 million, who will care for the more than 96 million Nigerians in the informal sector?” it queried.

The think tank described the NLC’s proposal as “myopic,” arguing that it fails to reflect a comprehensive understanding of the country’s economic realities.

Despite acknowledging a rise in the cost of living following recent increases in fuel prices, IMPI maintained that Nigeria’s economy is now more resilient than in previous oil boom cycles.

“We agree that since the commencement of hostilities in the Middle East, there has been an increase in the cost of living due to a 34 per cent rise in the pump price of petrol.

Nonetheless, the historical circumstances that weakened the Nigerian economy during past oil price shocks no longer obtain under the administration of President Bola Ahmed Tinubu,” it stated.

IMPI recalled that previous periods of high oil prices between 2000 and 2014 did not translate into sustainable economic growth, but instead coincided with rising poverty, fiscal deficits, and systemic inefficiencies.

Citing data from the National Bureau of Statistics, the group noted that poverty levels rose significantly during those years despite increased oil revenues.

“In 2007, about 54.4 per cent of Nigerians lived in absolute poverty. This rose to 60.9 per cent in 2010 and about 116.9 million Nigerians in 2012, reflecting a period when economic growth failed to reduce poverty,” it said.

In contrast, the group argued that recent reforms have strengthened macroeconomic stability and improved economic indicators.

It noted that Nigeria’s Gross Domestic Product rose to N441.53 trillion in 2025, representing an 18.43 per cent increase from the previous year, while dollar GDP also recorded its first significant growth since 2019.

“This shows a growth momentum in the economy and marks a fundamental shift towards resilience compared to previous oil boom eras,” IMPI added.

The group concluded that any potential oil windfall should be strategically invested to sustain economic reforms and drive inclusive growth rather than being distributed as short-term relief.