Tinubu’s first year presidency: For a living wage now

TINUBU’S FIRST YEAR PRESIDENCY

 

 

For A Living Wage Now

Time For a Mass Working People’s Alternative

By RSM Secretariat

Tinubu’s Presidency

By May 29, Bola Ahmed Tinubu will mark one year in office. Tinubu ascended to power in a tightly contested election among top capitalist elites in March 2023. Similar to his predecessor, Buhari, the Tinubu government has continued its assault on the working people. Despite numerous promises, recent developments and policies indicate that Tinubu’s administration offers nothing fundamentally different to the people.

These developments come as no surprise. During Tinubu’s tenure as Governor of Lagos State (1999 – 2007), he implemented several anti-worker policies. We have documented incidents where several workers lost their lives in Lagos during protests for a new minimum wage. The leader of the struggle, Ayodele Akele (late), was dismissed and not reinstated until his passing.

Recently, Tinubu adopted one of the recommendations of the International Monetary Fund (IMF) and the World Bank – to float the Naira. This marks the third significant anti-worker policy of Tinubu’s first 10 months in office, following the removal of subsidies on PMS and electricity. Despite claims that subsidies on PMS have been reinstated, market prices remain unchanged.

There is also an average 225% increase in fees across all Federal and State Institutions. The shift from study grants to student loans is another issue which affects the poor. Student loans cannot alleviate the crisis in the education sector; instead, they will lead to increased fees at various institutions, fund mismanagement, and debt accumulation.

Meanwhile, the Tinubu government reportedly allocated ninety billion naira to sponsor pilgrims to Saudi Arabia for Hajj. To date, Tinubu has not publicly addressed or reduced the extravagant salaries and allowances received by political office holders and appointees.

 

Nigeria’s Economy in Crisis

The potential reinstatement of subsidies on PMS is also a significant point of contention. The recent assertion by Nasir El-Rufai regarding the reintroduction of PMS subsidies raises more questions than it answers. El-Rufai, a former governor of Kaduna state, informed journalists in Maiduguri on Monday, April 15, that many citizens were unaware of the government’s reintroduction of the PMS subsidy, which he claimed exceeded previous levels. This assertion was corroborated by Ogbechie, the CEO of Ranoil, who stated that the Federal Government now allocates N60 billion monthly to petrol subsidies. Earlier, on Feb 14, the International Monetary Fund (IMF) confirmed the reinstatement of subsidies on PMS due to the consistent depreciation of the naira in the international market.

The Tinubu government abruptly announced the removal of the subsidy on May 29 during its inauguration. This unilateral decision caused significant turmoil in the market and resulted in substantial increases in the prices of goods and services. The rationale provided by the Tinubu government was that the removal of subsidies will generate funds for ‘infrastructural development.’

However, one cannot help but question how the government prioritizes infrastructure over the survival of its people. After all, only the living can benefit from infrastructure! In a country like Nigeria, which is rich in oil resources, it is ironic that there is not a single functioning government-owned refinery. Instead, there is heavy reliance on the importation of petrol and other petroleum products.

2023 proved to be one of the most challenging years for Small and Medium Scale Enterprises (SMEs). Just two months after the removal of petrol subsidies in May, an estimated 4 million small businesses reportedly closed due to the harsh economic conditions. By October, the Nigerian Association of Small-Scale Industrialists reported that Micro, Small, and Medium Enterprises were shutting down daily. Several prominent businesses have also downsized operations this year, citing adverse economic conditions and unfavorable policies as reasons. The Manufacturing Association of Nigeria (MAN) has highlighted a troubling trend within the industry, with approximately 767 manufacturing companies ceasing operations and 335 experiencing distress in 2023. These challenges stem from various economic difficulties, including exchange rate volatility, rising inflation, and a general deterioration of the investment climate.

The continued reliance on the private sector underscores the Tinubu government’s inability to steer the country out of crisis. While the government touts the new Dangote refinery, it has failed to revive any of its own refineries. Despite the media attention surrounding the mechanical completion of the Port Harcourt refinery since December, the refinery has yet to produce any petroleum products. The government has intentionally relied on the private sector.

The persistent crisis in the power sector further demonstrates that privatization cannot address Nigeria’s fundamental problems. President Tinubu has neglected to address the major issues of frequent power outages, estimated billing, and misconduct by Distribution Companies (DISCOs) while endorsing the removal of electricity subsidies. The root cause of the problem lies in the privatization of the power sector. Otherwise, why would the government subsidize a national, public asset? The government should urgently address this corporate greed!

The crisis in the transportation sector persists despite the substantial loans obtained by both the current and previous governments from China, the IMF, and the World Bank for that purpose.

 

Endless Corruption and Human Rights Abuses

Similar to the situation under Buhari’s administration, ministers appointed by Tinubu continue to exploit the nation’s wealth. Dr. Beta Edu, a new minister in the Tinubu regime, is currently under investigation for allegedly mismanaging a staggering N37.1 billion within her five months in office. Similarly, Halima Shehu, the National Coordinator and CEO of the National Social Investment Programme Agency (NSIPA), was arrested in early April in connection with the transfer of N44 billion from NSIPA accounts to suspicious accounts in December 2023.

The reality facing every Nigerian is that political officeholders and their appointees are responsible for widespread corruption and abuse of power. We often hear about annual project budgets in the news, but the results are rarely seen. The majority of allocated funds end up lining private pockets through inflated contracts, excessive allowances, budget manipulation, and padding. Even recovered funds are often misappropriated, as witnessed with the Abacha loot under the previous Buhari regime.

President Tinubu, like his predecessor, continues to violate human rights and disregard court rulings. One glaring example is the case of the Nigeria Police Force’s refusal to pay the court-ordered N50 million compensation to the family of the late Alex Ogbu.

Tinubu’s administration has failed to uphold human rights and the rule of law nearly a year into office. He has also neglected to act on the findings of investigations into the killing of peaceful #EndSARS protesters by the military and police at the Lekki Toll Gate on October 20, 2020. All instances of police brutality, both before and after the disbandment of the Special Anti-Robbery Squad (SARS), must be thoroughly investigated. Victims deserve compensation, and perpetrators must be held accountable.

We have witnessed how the Nigerian military, State Security Services, and Nigeria Police Force disregard the law and violate fundamental human rights. Instances include indiscriminate arrests, extrajudicial executions, enforced disappearances, arbitrary arrests, and secret detentions, particularly in regions like the Indigenous People of Biafra (IPOB). While we support the right to self-determination, we condemn violence and attacks on other ethnic groups.

Labor unions are also facing threats and coercion during strikes and protests.

In present-day Nigeria, life has become increasingly undervalued due to the complacency of the security apparatus. Kidnappings, abductions, ransom payments, and killings have become alarmingly common across the country.

 

For a Living Wage

As it stands, Nigerian working people urgently require a new living wage. Despite the removal of subsidies and other monetary policies, the federal minimum wage remains a dismal N30,000 per month. Inflation has ravaged the transportation, education, and commodity markets to the extent that an average Nigerian can no longer afford two meals a day.

Workers must advocate for a new living wage! This won’t be handed to them easily. Therefore, labor unions must take concrete actions such as organizing general strikes and mass protests to compel the government and various tripartite committees to immediately implement a higher minimum wage. Additionally, workers should demand an end to the exorbitant salaries of public officeholders and heavy taxation on profits.

 

Time for a Mass Workers’ Party

All major candidates in the last general elections, from Bola Tinubu to Atiku Abubakar and Peter Obi, pledged to “remove fuel subsidies” if elected. This suggests that there would have been little difference had any of them assumed power.

The two union centers also failed to oppose Peter Obi, who ran on the Labour Party platform despite his neoliberal policies. He openly labeled fuel subsidy as “organized crime” that needed to be eliminated. People were led to believe that Peter Obi was a preferable candidate with lesser evils, but his campaign activities and policies proved otherwise.

The Nigerian Labour Congress and the Trade Union Congress of Nigeria must establish a mass workers’ party. The crisis in the Labour Party today demonstrates that it will continue to be controlled by right-wing elements and political opportunists who exploit it for profit-driven motives. Both NLC and TUC leadership must mobilize their members to join the party, reclaim it, and operate it in accordance with the interests and aspirations of the people.

Such a party has the potential to evolve into the mass workers’ party that Nigerian working people urgently need to combat capitalism and neoliberal policies, which have plunged the majority into poverty despite the nation’s abundant resources.