The Independent Media and Policy Initiative (IMPI) has faulted recent demands by the Nigeria Labour Congress (NLC) for wage awards and increased allowances for workers, describing the proposal as ill-timed and economically short-sighted.
The policy group, in a statement signed by its Chairman, Dr. Omoniyi Akinsiju, argued that the NLC’s call for the distribution of a projected oil windfall estimated at about N30 trillion amid rising global crude prices triggered by tensions in the Middle East could undermine long-term economic stability.
IMPI noted that while organised labour seeks relief measures such as wage awards, new allowances, and tax suspensions for low-income earners, such moves risk prioritising immediate consumption over sustainable economic growth. It likened the proposal to “eating the seeds meant for harvest,” warning that diverting anticipated revenue into recurrent spending could limit future economic gains.
The think tank further stressed that the formal workforce, which the NLC represents, accounts for only about 15 per cent of Nigeria’s labour force, leaving over 85 per cent in the informal sector. It questioned the fairness of distributing the potential windfall primarily to a minority segment of the population, without addressing the broader economic needs of the majority.
While acknowledging that the ongoing Middle East crisis has contributed to a 34 per cent rise in petrol prices and increased cost of living, IMPI maintained that Nigeria’s economy is now more resilient than in previous oil boom periods.
Drawing comparisons with past oil price surges between 2000 and 2014, the group observed that increased revenues during those years failed to translate into improved living standards. Instead, the period was marked by fuel scarcity, subsidy-related corruption, rising poverty, and weak economic growth.
Citing data from the National Bureau of Statistics (NBS), IMPI highlighted that poverty levels rose significantly during those years, with millions of Nigerians falling below the poverty line despite high oil earnings.
In contrast, the group pointed to recent economic indicators as evidence of improved resilience. It noted that Nigeria’s Gross Domestic Product (GDP) rose to N441.53 trillion in 2025, reflecting an 18.43 per cent increase from the previous year, while dollar-denominated GDP climbed to approximately $308 billion.
IMPI concluded that any oil windfall should be strategically invested to strengthen economic stability and growth, rather than being expended on short-term wage adjustments that may not yield lasting benefits for the broader population.
