IMPI Labels NLC Wage Demands ‘Myopic,’ Urges Focus on Long-Term Growth
The Independent Media and Policy Initiative (IMPI) has criticized the Nigeria Labour Congress (NLC) over its recent demand for increased salaries and allowances, following projections of a N30 trillion oil windfall triggered by the Middle East crisis.
In a policy statement signed by its Chairman, Dr. Omoniyi Akinsiju, the think tank described the NLC’s demands as “inappropriate” and “myopic,” arguing that such a move would prioritize short-term gratification for a small fraction of the population over long-term national economic growth.
Concerns Over Economic Inclusivity
The NLC had called for wage awards, new allowances for civil servants, and tax suspensions for low-income earners to cushion the rising cost of living. However, IMPI pointed out that formal sector workers represent only 15% of Nigeria’s total workforce.
”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 statement questioned. The group warned that consuming resources intended for growth—likened to “eating the seeds” of a harvest—would prevent future economic returns.
Historical Context and Policy Shift
IMPI noted that while petrol prices have risen by 34% over the last three weeks due to global hostilities, the current administration’s economic structure differs significantly from previous “boom” periods.
The group highlighted that between 2007 and 2014, despite high crude oil prices (averaging $100 per barrel), Nigeria saw a rise in absolute poverty—from 54.4% in 2007 to 60.9% in 2010. IMPI attributed this to a “corruption-laden subsidy regime” and a lack of economic resilience that saw GDP drop significantly once oil prices cooled.
Current Economic Outlook
Contrasting past failures with recent data, IMPI argued that the Nigerian economy is showing signs of recovery and stability. Key highlights from the report include:
- GDP Growth: Nigeria’s nominal GDP rose to approximately $308 billion in 2025, up from $241 billion in 2024.
- Rebasing Success: Following an integrity-driven rebasing, the GDP reached ₦441.53 trillion in 2025, marking an 18.43% increase from the previous year.
- Resilience: The think tank asserted that the projected windfall should be used to bolster “economic resilience” rather than being dispersed as immediate cash awards.
IMPI concluded that the current growth momentum marks the first positive increase in Nigeria’s dollar-denominated GDP since 2019, urging the government to remain focused on policy-driven stability rather than yielding to the NLC’s “short-term” demands.
