|Nigeria Table of Contents
The size of Nigeria's labor force was difficult to calculate because of the absence of accurate census data. The labor force increased from 18.3 million in 1963 to 29.4 million in 1983. Census data apparently understated the number of self-employed peasants and farmers, but estimated that the proportion of Nigerians employed in agriculture, livestock, forestry, and fishing fell from 56.8 percent in 1963 to 33.5 percent in 1983. The percentage of the labor force employed in mining rose from 0.1 percent in 1963 to 0.4 percent in 1983. Exactly comparable data were lacking on manufacturing, but from 1965 to 1980 industry's share of the labor force rose from 10 percent to 12 percent whereas the services sector grew from 18 percent to 20 percent of the labor force.
The national unemployment rate, estimated by the Office of Statistics as 4.3 percent of the labor force in 1985, increased to 5.3 percent in 1986 and 7.0 percent in 1987, before falling to 5.1 percent in 1988 as a result of measures taken under the SAP. Most of the unemployed were city dwellers, as indicated by urban jobless rates of 8.7 percent in 1985, 9.1 percent in 1986, 9.8 percent in 1987, and 7.3 percent in 1988. Underemployed farm labor, often referred to as disguised unemployed, continued to be supported by the family or village, and therefore rural unemployment figures were less accurate than those for urban unemployment. Among the openly unemployed rural population, almost two-thirds were secondary-school graduates.
The largest proportion of the unemployed (consistently 35 to 50 percent) were secondary-school graduates. There was also a 40- percent unemployment rate among urban youth aged twenty to twenty-four, and a 31-percent rate among those aged fifteen to nineteen. Two-thirds of the urban unemployed were fifteen to twenty-four years old. Moreover, the educated unemployed tended to be young males with few dependents. There were relatively few secondary-school graduates and the lowered job expectations of primary-school graduates in the urban formal sector kept the urban unemployment rate for these groups to 3 to 6 percent in the 1980s.
Labor unions have been a part of Nigerian industry since 1912, when government employees formed a civil service union. In 1914 this organization became the Nigerian Union of Civil Servants after the merger of the protectorates of Northern Nigeria and Southern Nigeria. In 1931 two other major unions were founded--the Nigerian Railway Workers Union and the Nigerian Union of Teachers (which included private-school teachers). Legalization of unions in 1938 was followed by rapid labor organization during World War II as a result of passage by the British government of the Colonial Development and Welfare Act of 1940, which encouraged the establishment of unions in the colonies. The defense regulation of October 1942 made strikes and lockouts illegal for the duration of the war and denied African workers the cost-of-living allowances that European civil servants received. In addition, the colonial government increased wages only modestly, although the cost of living rose 74 percent from September 1939 to October 1943. In June and July of 1945, 43,000 workers, most of whom were performing services indispensable to the country's economic and administrative life, went on a strike that lasted more than forty days. In large part as a result of the strike's success, the labor movement grew steadily and by 1950 there were 144 unions with more than 144,000 members.
Although the labor movement was federated in 1941, the period from the end of World War II to 1964 was characterized by numerous splits, regroupings, and further fragmentation. Factionalism was rampant, engendered by the reluctance of the Colonial Office to strengthen union rights, dependence on foreign financial support, the thwarting of labor's political objectives by nationalist leaders, and intramural ideological differences. The most visible manifestation of labor problems was the dispute over whether to affiliate with the East European socialistoriented World Federation of Trade Unions, based in Prague, or the more capitalist-oriented International Confederation of Free Trade Unions, headquartered in Brussels.
In 1963 union members numbered 300,000, or 1.6 percent of the labor force. Despite this low level of organization, labor discontent worsened as the gap widened between the wages of white-collar and those of blue-collar workers. In FY 1964, supervisors were paid thirty-three times as much as daily-wage workers and semiskilled workers in public service. After independence, many workers had begun to feel that the political leadership was making no effort to reduce the inequalities of the colonial wage and benefit structure. Corruption and conspicuous consumption were perceived to be widespread among politicians. An April 1963 pay raise for ministers and members of parliament further fueled labor resentment because rank-and-file civil servants had been doing without raises since 1960. The five superordinate central labor organizations consequently formed the Joint Action Committee (JAC) to pressure the government to raise wages. Numerous delays in the publication of a government commission report on wages and salaries provided partial impetus for a JAC-mobilized general strike of 800,000 supporters, most of them nonunionists, which lasted twelve days in June 1964. Although the strike demonstrated the government's fragility, the JAC could not translate its victory into permanent political strength; labor unity disintegrated in the face of overtures by political parties to segments of organized labor as the federal elections of December 1964 neared.
Political parties and communal associations were banned during the military rule of the late 1960s, so labor unions posed a potential organized threat to the government. The military government's decree in 1969 forbidding strikes was repeatedly defied during the next four years, most notably in 1973, when the regime gave in to demands by striking postal and telecommunications workers, about one-fifth of the federal civil service. Labor activities and internal strife among four central labor organizations continued up to 1975, when the military government attempted, unsuccessfully at first, to merge the four bodies into one unit, the Nigerian Labour Congress (NLC). The government dissolved the four central unions, prohibited union affiliations with international labor organizations, and in 1977 banned eleven labor leaders from further union activity. Under terms of a 1978 labor decree amendment, the more than 1,000 previously existing unions were reorganized into 70 registered industrial unions under the NLC, now the sole central labor organization.
In the early 1980s, the civilian government found itself losing control of organized labor. Numerous wildcat strikes occurred in 1980-81, and in May 1981, the NLC mobilized 700,000 of 1 million unionized Nigerian workers for a two-day strike, despite the opposition of a government-supported faction.
Working days lost through strikes declined from 9.6 million in 1982 to 200,000 in 1985 in the midst of a decline in national income that had begun in 1983. Industrial unrest resulted, however, in demands by larger number of workers for payments of salary arrears and fringe benefits as real wages fell by almost 60 percent. The causes of the decline in real wages were the World Bank-advised SAP and the unfavorable terms of trade that resulted from the collapse of the world oil market between 1986 and 1989.
More about the Economy of Nigeria.
Source: U.S. Library of Congress