When take-home pay no longer takes workers home

FUNMILAYO AREMU reports on the hardship being faced by Nigerian workers and how the rising prices of commodities over the years have made nonsense of their earnings.

Wande Coal, a Nigerian artiste, in one of his songs entitled, Se na like this we go deydey…, released in 2009, pointed out the hardship that Nigerians were facing at the time, comparing it to the luxury that was formerly enjoyed. He also sang about how good the economy used to be, and how workers’ welfare was a priority as graduate employees often received automobiles as soon as they secure a job.

He added that by 2009, however, the situation had deteriorated to the point where every Nigerian was crying out, bemoaning the poor economic situation. Thus if the economic situation was that bad about 13 years ago, and thing had become worse today going by all indices, including the cost of living, one could only imagine how really difficult things have become.

Today, most Nigerian graduates could only dream of that day when they would be offered a job in a company, an establishment or even in the public service without the luxuries that used to go with getting a job. Having roamed the streets sometimes for months or even years, the excitement of getting a salary and beginning to lead a good life is often something to look forward to as they join the labour force. However, the prevailing socio-economic situation in the country often douses the excitement and euphoria.

Over the years, Nigerian workers have always lamented this incessant hike and how difficult it is to make ends meet. According to Sunday Tribune investigations, many workers are sometimes forced to take out loans to make ends meet.

One of such workers who has reconditioned to take regular loan in order to survive  isMrAdekunle. Adekunle (not real name), a middle-aged man and father of four, has been living from hand to mouth due to the constant rise in commodity costs. His first two children are in the university, and he must take loans to pay for their education, housing, tuition for his other children, food, and other necessities for the entire family.

Adekunle, a level 14 civil servant, has been making the most of his limited financial and other resources. Since the Academic Staff Union of Universities (ASUU) went on strike, his children have both returned home from school, which meant that his food expenses would increase unless he cuts back or went into deeper debt.

Mr Wale Fagbemi, another public servant, told the Sunday Tribune that surviving as a worker in the current environment is like going through hell. According to him: “I don’t know how possible it is to subsist on one’s wage unless one is cutting corners elsewhere. Civil servants may only make ends meet now by taking out many loans to feed their families. Every commodity has a high price.”

To determine the extent commodity prices have risen, as it is often said, Sunday Tribune conducted a market survey, comparing the prices of basic goods in 2012, 2017, and 2020 with the prices obtainable today.

It was discovered that a 50-kilogramme bag of rice used to be N6,500 around 2012, then it went up to between N12,000 and N15,000 towards the end of 2015, then to N23,000. Now, it is sold at N32,000 after rising to about N35,000 at some point.

In 2012, a bag of beans went for about N10,000 and N12,000, but today it sells for between N45,000 and N50,000. For those who could not afford the bag and rather buy in small measures, a big tin measure of beans went for N350, then it went up to N500, and now it is sold for N1,200. Likewise, a measure of garri which used to sell for N50 around 2012 rose to N100 in 2015 and now the same measure is sold for N400.

Similarly, a large bag of yam flour used to sell for N40,000 in 2012; then in the intervening years it went to N80,000, and now for goes for N140,000. A 500-gram pack of spaghetti was formerly priced at N100, then N170, and is now priced at N400. Five medium-sized yam tubers that sold for N1,500 in 2015 now sell for N6,000.

A very important aspect of all these is the act of cooking which is also costing a lot. For some time many homes, even low income earners had jettisoned the use of kerosene and charcoal, opting for gas instead. A 12-kilogram cylinder that cost N8,000 roughly seven years ago, costs N20,000 today. A kilogram of cooking gas that used to cost N250 about 10 years ago, now costs N700.

 

Higher cost of accommodation and power

The cost of electricity supply is another fundamental problem. In 2010, the tariff was set at N8 per kilowatt-hour (kWh). However, by 2015, it increased to N18 per 1kWh. Currently, the value of electricity tariff is valued at N59.64 per 1kWh.

For the average worker to get a good accommodation to put his head is even more of a priority than a high cost of electricity tariff. In reality, the cost of a decent house is getting beyond the reach of an average Nigerian worker.

Sunday Tribune spoke with a real estate agent, Fisayo Ogunsola, to find out the realities of the cost of the housing sector. Ogunsola, who outlined the changes said: “The rent charges on apartments varies based on the location. Around ten years ago, in the most desirable estates in Ibadan, for example, a newly built three-bedroom flat with all the amenities could cost between N300,000 and N350,000. However, it is currently worth between N1 million and N2 million.

“A room and parlour self-contained apartment in the same neighbourhood costs between N150,000 and N200,000. Apartments that used to cost N250,000 now cost N500,000 or more. But we can’t blame the landlords; the rise in cost of building material prices is also another issue,” he explained.

 

Poor Take-home pay

Sunday Tribune investigation of the Federal Civil Service Commission salary structure discovered that it varies from ministry to ministry and from agencies under them to the other. As a result, creating a generic wage structure could be challenging.

 

For Adekunle, the civil servant, making ends meet has been hazardous as he has been taking loans and is currently in debt, owing four microfinance banks and the cooperative society at his workplace. He repays the loans through his salary which leaves him with just pittance at the end of the day out of his full salary of N140,000.

Despite having four children, he also has an elderly mother to care for. Adekunle has no other source of income besides his pay and has begun to cut back on spending and given up the small luxuries he formerly enjoyed.

“As commodity prices rose, I was forced to make several concessions. First and foremost, I had to lower the amount of money I regularly send to my children’s schools. I removed my third and fourth children from the private schools they attended and enrolled them in public schools.

“Another issue I had to compromise on was the type of food I consumed and how frequently my family and I ate. It used to be a full three-square meal, which many people refer to as 1-1-1, but now it’s sometimes twice or once a day, depending on my capabilities. Except for the very wealthy, I don’t believe any Nigerian eats three-square meals anymore.

“I used to buy a bag of rice for the family, but now I can’t afford even a quarter of a bag; I only buy what we need. I had to use Cassava flour meal (amalalafun) instead of Yam flour meal (amalaisu). I had to give up eating expensive fish in favour of sardines and roasted panla fish. I am responsible for my old mother. I have university tuition and housing rent to pay for my children. Everything is simply too expensive,” he bemoaned.

According to Fagbemi, the will to work harder is waning because government has not provided palliatives or done anything to mitigate the impact of poor economy. He stated that the after-effects of COVID are still being felt and that the current market condition is like going through hell.

The National Labour Congress (NLC), the umbrella body of workers’ union since its inception in 1978, has continued to fight for their rights and for better welfare package with protests against the federal government and going on strike to express their dissatisfaction with government policies and actions.

Fagbemi, who is also the National Coordinating Committee Chairman for National Orientation Agency (NOA), Staff Union, is however of the opinion that the NLC has failed workers by not doing enough to better their lot.

“Our politicians are just too wicked. They are not humane at all and they keep on increasing their own allowances. And, regrettably, I must state that the leadership of the Nigerian Labour Congress, of which I am a member, has failed miserably. This is the time they should have stood up to the government. The minimum wage is nothing to write home about,” he grumbled.

 

Is there a way out for workers?

Despite the galloping rise in commodity prices, basic needs, including cost of transportation and housing many of those who spoke with Sunday Tribune believed there are many ways out of the current situations for workers, especially those of them who are not afraid to exploit other means of income since their salaries alone could no longer sustain them.

According to Fagbemi, to break out of the vicious cycle of poverty, civil servants could go into agriculture as an alternative source of income as it is the only side hustle approved by the government for those still in service.

“I am fully engaged in farming and planning my retirement. I have a cassava farm and very soon, I will start a piggery outlet to set up my retirement plan because if government fails to make preparations for our today and tomorrow, as individuals, we must do everything we could to ensure that the future belongs to all of us,” he advised.

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