In Crisis-Torn Nigeria, the Proletariat Struggles for Wages

The eruption of anti-government protests in Kenya this June, and the bloody repression that followed, have by no means obscured the spectre haunting Nigeria. In Africa’s most populous country, where the younger generation of proletarians are experiencing the worst cost-of-living crisis ever seen, the embers of class insubordination are being rekindled. A formidable strike unfolded that could threaten the peace across the entire African continent. On May 31st, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), the largest trade union organizations in Nigeria, called for an indefinite general strike. This nationwide strike manifested in response to the government’s indifference on the issue of the minimum wage. The trade unions demanded an increase from 30,000 Nigerian Naira (just over USD 18 at the current exchange rate) to 494,000 Naira (about USD 300). This mobilization reflects the growing resolve of workers to challenge capitalist domination, both nationally and internationally.

Although Nigeria is not among the poorest countries in the sub-Saharan region, the living and working conditions of its proletariat are among the harshest. Workers in the declining textile industry endure 12-hour shifts, producing luxury items for mere pennies an hour. The economy, heavily dependent on volatile oil prices, is plagued with corruption and suffers from inefficient management. This year the Ministry of Humanitarian Affairs has seen $640,000 disappear from embezzlement and various misappropriations. The patronage economy is thriving, with brand new public entities emerging overnight to offer prestigious positions to the underbrush of the already parasitic political class. Many young people, now disillusioned about their future life prospects in overcrowded cities, are increasingly turning to banditry and religious extremism. For the others, they swell the ranks of the industrial reserve army, intensifying the competition for jobs and, in turn, further depressing abysmal wages.

Nigeria is a country endowed with natural resources that has experienced sustained economic growth in the early years of this century. While for us Marxists, GDP figures aren’t the most significant for describing a country’s wealth; for more developed countries it is much more important for us to assess their industrial production. In the case of Nigeria, we are dealing with a country in which the bulk of national wealth depends on oil revenue. Oil comprises more than 90% of exports, and it also accounts for 80% of the national budget. The country’s nominal GDP was $470 billion in 2022, but IMF estimates for 2024 to place it below $253 billion. In 2015, it had reached its peak at $574 billion. In addition to the loss of over two hundred billion in nominal GDP over nine years, the challenging economic situation must also consider the substantial population increase, which grew from 184 million in 2015 to over 229 million in 2024. However, the situation does not seem as catastrophic as the nominal GDP figures might suggest. In fact, the GDP per capita, adjusted for purchasing power parity, has dropped by about a fifth since 2015, which would indicate significant impoverishment, but still not as drastic as one might infer from the nominal GDP. The continuous devaluations of the Naira have conspicuously contributed towards this, with its exchange rate against the dollar more than halving over the last year.

In this context of this chronic economic crisis, the harsh economic reforms of President Bola Tinubu have only worsened the difficulties faced daily by the proletarians and semi-proletarian layers, who make up the vast majority of Nigeria’s population. These reforms include the removal of fuel subsidies, which tripled prices, and an increase in tariffs.

Nonetheless, the workers reacted to these new attacks on their living and working conditions. A sudden and widespread wave of struggles have upended the country since the first week of June. Unionized workers in the electricity and airline sectors crossed their arms on June 3rd, causing a complete shutdown of both the national electrical grid and air transport across the countries. Scabs in the electricity network who did not join the strike were forcibly removed from their workstations, some being beaten. With the electricity grid down, Lagos and Abuja airports came to a standstill, schools closed, and hospitals could no longer function, all as a result of the Nigerian proletariat’s determination to fight. Electricity and water supplies were also cut off at the National Assembly, confirming the proletariat’s disdain for the sordid bourgeois bivouac of a parliament, while protesters blocked the gates of the building. These actions effectively paralysed all government functions. Striking workers were also seen ordering Nigerian Revenue Agency officials out of their offices. Banks and hospitals remained closed, with one doctor stating that the Nigerian health system was “on the verge of collapse” as hospitals could no longer function without electricity. The school sector unions showed their solidarity with their mobilization announcing strikes, demanding stolen back-pay, and denouncing the government’s indifference to their economic plight. The oil industry unions also threatened to strike, but the government had failsafes and enforce the continuation of oil extraction.

As the strike evolved, the government thought to wait out the workers’ resolve with their reserves of capital, all accumulated at the workers’ own toil. However, the international bourgeoisie intervened, with the World Bank loaning $500 million to support Nigeria’s faltering electricity sector. This interim measure underscored the severity of the crisis.

During these palpable weeks, the government was forced to make concessions on demands, eliminating the huge increases in electricity and fuel tariffs that had reduced workers’ purchasing power. After six weeks of strike action, negotiations with the government came to an agreement that set the minimum wage at 70,000 Naira (USD 42), far less than what the unions had demanded. The government also promised to review electricity tariffs and to consider their impact on poorer consumers, as well as pledging to increase investment in transport infrastructure and renewable energy. The NLC and the TUC to this compromise both gave their consent and workers were sent back to their jobs, but now with an additional 40,000 Naira (24 dollars) more in their paychecks.