We need a salary re-adjustment that will meet the current economic

By Bimbola Oyesola

As Nigeria marks Workers’ Day, the President of the Chemical and Non-Metallic Senior Staff Association (CANMPSSAN), Segun Samson David, paints a stark picture of the realities facing workers in the sector. Over the past year, employees have grappled with job losses, redundancies, and widespread economic pressure driven by inflation, high operational costs, and unstable government policies. Many companies are struggling to stay afloat, with some entering receivership or transferring ownership, leaving workers increasingly vulnerable.

David highlights the deepening welfare crisis among workers, noting that wages have failed to keep pace with the rising cost of living. With a minimum wage of N70,000 and many workers earning below N200,000 monthly, basic needs such as food, transportation, housing, and healthcare remain out of reach for many families. Inflation, currency depreciation, and rising fuel prices have significantly eroded purchasing power, while job insecurity, casualisation, and weak healthcare benefits continue to affect workers across the industry.

He also points to broader structural challenges affecting the sector, including high energy costs, unreliable power supply, heavy import dependence, and multiple taxation. Employers are cutting costs and restructuring operations to survive, often at the expense of workers. Amid these pressures, David calls for urgent policy reforms, improved labour protections, and a renewed focus on skills development, urging workers, employers, and government to take coordinated action to secure the future of the industry.

Economy and policy environment

Nigeria’s economic climate remains challenging—how is this affecting senior staff in the chemical and non-metallic sectors specifically? Most especially the past one year.

The past one year has been a hard time for employees in the Chemical and Non-Metallic Products sector. We have faced challenges of job losses through redundancy. Most of our employers are faced with the problems of liquidity issues, high operational cost, government policies amongst others which have made some of the companies taking over by receivership and others selling their shares to a new investor just to allow the company to continue in its business. The minimum wage of #70,000 cannot even meet the current standard of living of an average Nigerian worker, the food inflation and the high cost of transportation coupled with increase in petrol prices ranges from #1,250 to #1,350 as the case many be does not give a light at the end of the tunnel to a family of four. Honestly speaking we need a salary re-adjustment that will meet the current economic reality.

What policy changes would CANMPSSAN like to see from the government to stabilize the sector and protect jobs?

With the recent advocacy by Manufacturers Association of Nigeria (MAN) and CANMPSSAN on industry and economic conditions as of 2025 – 2026, we would like to see a policy shift that focused on foreign exchange access for importing of raw materials that are not available locally, reduction in excessive customs duties and levies on importation of raw materials so as to reduce production cost, protection of local industry by ensuring strict compliance so that we can encourage our locally made products, our employers need single digit interest rate on loan to boost investment and reduce the burden of high credit cost, tax incentives which will attract more investment in the manufacturing and petrochemical industry, and we would want the government to review their regulations on chemical products, most of the policies are old and are over a decade. We want it to align with the current and modern circular economy principle, new environmental standard and international compliances.

With inflation and currency fluctuations impacting businesses, how are employers responding, and what does this mean for workers?

The employers in our industry are responding to a high rate of inflation and naira depreciation by slashing operation cost, optimizing supply chains, while some are adopting remote work to reduce overhead cost. The situation severely erodes workers purchasing power, increase financial hardship and low quality of living standard.

Workers’ welfare and conditions

How would you assess the current state of workers’ welfare among your members, particularly in terms of wages, healthcare, and job security?

The current state of workers welfare in our sector is characterized by significant distress marked by low purchasing power as a result of inflation. Large number of workforces under our sector are earning less than #200,000 per month, these set of workers are struggling to meet up with basic needs. In terms of their health benefits, many of the organization policies are insignificant with many workers relying on out-of-pocket expenses to care for themselves at the hospital. Job security in the private sector are low, and the major reason is breach in the contractual agreement on conditions of service, high rate of casualization of workers and precarious work are common.

Then how do you see the present minimum wage sufficiency for workers

The 2024 minimum wage of #70,000 is widely regarded as insignificant to meet the basic needs of a Nigerian worker such as food, housing, transportation and access to good healthcare, coupled with devaluation of naira and hike in petrol prices. Where is the minimum wage standing here.

What should be the amount workers should be demanding when the next round of negotiations begin based on the present inflation and attendance hardship being faced by the workers.

With the current rate of inflation which has exceeded 33%, I think labour should demand for #450,000 as minimum wage.

Are senior staff adequately protected against workplace hazards in this industry, and what improvements are still needed?

The senior staff in our sector are not adequately protected despite the existence of regulatory frame work. While some multinational companies and petrochemical companies often maintain high health, safety and environmental (HSE) standard, a few number of particularly the small and medium size enterprises suffers from weak compliance, low safety culture and lack of enforcement. For the improvement on this HSE, labour will collaborate with the ministry in question to ensure total compliance.

What steps is CANMPSSAN taking to address issues such as delayed salaries, pensions, and benefits?

We engage with the Human Resource department to ensure prompt payment of workers salaries, pension and other benefits accrue to them, especially we remind them of the penality of pension 2% if they failed to remit.

Sector challenges

What are the biggest challenges facing the chemical and non-metallic industries in Nigeria today?

Our sector is expected to see a recovery with growth projection on our GDP to reach approximately 2.6% to 3.1% this year, but we are not seeing it coming as result of frequent national grid collapse which has made our industries to seek power supply from private generating plant which attract a high cost, high cost of diesel and gas. Presently the price of diesel is between N1,950 and N2,050 as the case may be, we are import dependence because over 70% of our industry raw materials are imported, fluctuation of foreign exchange and naira depreciation attract high cost of shipment, confronted with multiple taxation and levies from different agencies of government which has increase the cost of doing business, while others are policies inconsistence, insecurity, shortage of skilled workers and casualization of workers.

How are factors like energy costs, infrastructure deficits, and regulatory pressures affecting productivity and employment?

These factors have escalated operational cost, forcing businesses to divert funds from expansion to other alternative energy source, reducing manufacturing output and when the business can no longer manage the pressure, they will result into redundancy.

To what extent is technological advancement or automation influencing job roles and will lead to job loss.

While AI adoption is creating a new high skill of opportunities, it is simultaneously raising concern about job insecurity amongst the senior staff in an organization who failed to adapt or acquire new technological skills shifting from routine task to strategic data driven management. So, my advice to my people is to embrace AI in their various field or positions they are occupying in their organization. Some AI like people specialist, talent engineers and AI savvy, management use it in HR department, finance and logistics.

Labour Organising & Union’s Roles

How is CANMPSSAN strengthening its organising efforts to remain relevant in a rapidly changing labour landscape?

CANMPSSAN has moved from the traditional centralized mode of organizing to a digital forward inclusive strategies of both formal and gig-based workers, also our collaboration with our sister union and the support gained from TUC has really impacted on our organising positively.

What strategies are in place to engage younger professionals and encourage unionism

We ensure training and retraining of our members and our focus are issue base, digital skills, leadership and communication skill approach and other matters on industrial relations practices. In union, we have two training. The first is orientation and training for all the executive members in the branch and majorly on industrial and labour laws and how it can be best practiced in the organization, and the second is our annual seminal where members are exposed to business outlook of the company, and how they should support the business to continue as a going concern.

May Day Reflection & Forward Outlook

As Nigeria marks May Day, what message do you have for workers, employers, and the government regarding the future of labour relations in the sector?

With 90% of the Nigeria core jobs, skills are expected to be upgraded by 2030, hence workers must proactively seek training in new technologies such as automation and green chemistry. The employers should ensure also proactive re-skill and up-skill of workers rather than resulting or relying on layoff during economic downturn. The government should ensure that the various tax reforms and foreign exchange policies do not hinder business growth or trigger further company exit in the chemical sector.

Sent from my iPhone