The 2023 governorship candidate of the Labour Party (LP) in Lagos State, Gbadebo Rhodes-Vivour, has stated that the N85,000 minimum wage announced by Governor Babajide Sanwo-Olu is insufficient to meet the needs of the average Lagos worker.
In July, President Bola Tinubu signed into law the new National Minimum Wage Act, setting the minimum wage for Nigerian workers at N70,000.
During an interview on Channels TV on Wednesday, Sanwo-Olu disclosed that his administration had increased the state’s minimum wage to N85,000.
In response, Rhodes-Vivour noted that Lagos workers face unique cost-of-living challenges. He highlighted that the city has the highest intra-city public transportation costs in Nigeria, particularly for motorcycle rides. Additionally, Lagos ranks second nationally in the average cost of a healthy diet, making it the second most expensive city in the country for food.
“While the recent increase in the minimum wage to N85,000 is a step in the right direction, it’s important to note that this amount falls significantly short of addressing the unique cost-of-living challenges faced by Lagos workers,” he said.
“Excluding Abuja, Lagos has the highest rental costs in the country, with meagre investments in social housing programs and rent control policies.”
Rhodes-Vivour emphasized that a minimum wage of at least N100,000 is necessary for Lagos workers to achieve parity with their counterparts in other states.
He criticized Sanwo-Olu for claiming that his administration increased the Lagos budget from N600 billion to over N1 trillion, with a projected N3 trillion before the end of his term.
He argued that the governor’s statements do not align with reality, as Lagos continues to grapple with poor infrastructure, low investment in human capital, and inadequate educational outcomes.
“Governor Sanwo-Olu boasts of increasing the Lagos budget from N600 billion to over N1 trillion, with a projected N3 trillion before his term ends. He also claims a 94% budget performance rate. However, these claims seem to be at odds with the reality of Lagos. The city still grapples with poor infrastructure, low investment in human capital and education outcomes, a struggling public transportation network, increasing slums and informal communities, and very few social welfare programs. These are the issues that truly matter to the people of Lagos, not just the size of the budget,” Rhodes-Vivour noted.
“It’s crucial to note that over 70% of Lagos State’s operating revenue comes from taxes, with PAYE (Pay As You Earn) contributing 45%. This means the state’s wealth, which the governor seems to take all the credit for, is primarily generated by citizens’ hard work.
“The critical question is: What tangible benefits do Lagosians receive in return for this significant contribution? Do their children have access to quality public education? Is there an efficient and affordable public transportation system? Are the roads well-maintained? Is social housing readily available? Can residents easily access capital for entrepreneurship?
“These are the real measures of a government’s success, not just the size of its budget. Boasting about an aggressive and exploitative tax system without commensurate investment in public goods is more characteristic of a cartel than a supposedly progressive government.”
He criticized the ruling All Progressives Congress (APC), asserting that the party has wasted 24 years without making significant progress.
“While it is fair to commend opening the blue rail, albeit after 16 years, the question is, what kind of city are we building, who are we building for, and what opportunities do we seek to tap into? Comparing Lagos with Bauchi or Ekiti is juvenile and visionless when the city lags far behind its contemporaries around Africa.
“There is much work to be done in Lagos, and the APC has wasted 24 years, barely scratching the surface,” Rhodes-Vivour concluded.