IMPI Faults NLC’s Wage Demands, Warns Against Sharing Projected Oil Windfall
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IMPI Faults NLC’s Wage Demands, Warns Against Sharing Projected Oil Windfall
By Alabidun Shuaib AbdulRahman
The Independent Media and Policy Initiative, IMPI has criticised the Nigeria Labour Congress, NLC over its recent demands for increased salaries and allowances for workers, describing the move as inappropriate amid current economic realities.
The policy group’s position comes in the wake of calls by organised labour for the payment of wage awards, introduction of new allowances for civil servants, and tax relief for low-income earners, citing rising living costs linked to tensions in the Middle East.
In a statement signed by its Chairman, Dr Omoniyi Akinsiju, the think tank argued that such demands could undermine long-term economic growth.
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The IMPI said the demands were largely based on projections by the Nigeria Economic Summit Group that Nigeria could earn about N30tn as an oil windfall from the ongoing Middle East crisis.
Describing the proposal as misplaced, the group warned against what it termed the temptation to prioritise short-term benefits over sustainable economic gains.
“We consider this proposal rather inappropriate in the context of the age-long principle that admonishes that ‘one cannot eat the seeds and expect to reap a harvest,’” the statement read.
It added that sharing the anticipated windfall among formal sector workers would be inequitable, noting that they account for only about 15 per cent of Nigeria’s workforce, while over 85 per cent operate within the informal sector.
“With a total labour force exceeding 113 million, who will care for the more than 96 million Nigerians in the informal sector if those in the formal sector alone share the anticipated windfall?” the group queried.
The IMPI further described the NLC’s position as short-sighted, stressing that the projected revenue, if realised, should be channelled towards strengthening economic resilience rather than immediate consumption.
Despite acknowledging a rise in the cost of living following a 34 per cent increase in petrol prices in recent weeks, the group maintained that Nigeria’s economy remains stable under the administration of President Bola Tinubu.
It argued that unlike previous periods of global oil price surges, the country is now better positioned to withstand external shocks due to ongoing reforms.
The think tank recalled that between 2000 and 2014, increases in oil revenue were often accompanied by domestic fuel shortages, subsidy-related corruption, and widening poverty levels.
Citing data from the National Bureau of Statistics, the IMPI noted that poverty levels rose significantly during those years despite high oil earnings.
It, however, said recent economic indicators point to improved resilience, highlighting growth in the nation’s Gross Domestic Product and stronger macroeconomic stability.
According to the group, Nigeria’s GDP rose to N441.53tn in 2025, reflecting an increase of N68.71tn from the previous year, while dollar-denominated GDP climbed to approximately $308bn from $241bn in 2024.
The IMPI further noted that the projected oil windfall should be strategically invested to sustain economic reforms and drive long-term growth, rather than being distributed as immediate financial relief.
