Nigerian President Bola Tinubu said on Wednesday that economic reforms will continue despite the growing difficulties that have fueled public anger, and promised to send an executive bill to Parliament soon to set a new minimum wage.
President Tinubu, who took office a year ago, eliminated decades-long gasoline subsidies that had kept prices artificially low and devalued the currency, sending inflation soaring to 33.69% last April, its highest level in nearly 3 decades. And income erosion.
In a television broadcast to mark Democracy Day, Tinubu acknowledged the difficulties caused by the reforms, which also include higher interest rates and the partial elimination of electricity subsidies, but said this would create a stronger foundation for future growth. He added, “Our economy has been in dire need of reform for decades, and it is unbalanced because it was built on the wrong foundation of over-reliance on oil revenues. As we continue to reform the economy, I will always listen to the people and will never turn my back on them.”
Nigeria is facing its worst cost of living crisis in decades. Last week, trade unions suspended a strike called to pressure the government to agree to a new minimum wage. The government offered to double the minimum wage to 62,000 naira ($41.89) per month in exchange for workers’ demands worth 250,000 naira, and the Nigerian president said that his government negotiated in good faith.
The minimum wage was set in 2019. “We will soon send an implementing bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,” Tinubu said. The president did not mention whether the draft law would include the government’s proposal regarding the minimum wage or a new number. Labor union leaders said they would wait for a response from the president before deciding on next steps.
