As fresh negotiations over Nigeria’s national minimum wage approach, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for a stronger focus on sector-specific Collective Bargaining Agreements (CBAs) as a more sustainable way to protect workers’ earnings.
The union argues that inflation, currency depreciation and rising living costs have severely weakened the effectiveness of a single national wage floor.
PENGASSAN maintains that while the minimum wage remains necessary, it should serve only as a baseline, not the main instrument for determining workers’ welfare.
According to the union, CBAs allow wages and conditions of service to reflect the economic realities and skill demands of each sector, particularly in highly specialised industries such as oil and gas.
Speaking at an event marking the 20th anniversary of the death of former PENGASSAN president, Marcus Okoro, union president Festus Osifo said true worker dignity is secured through negotiated agreements, not statutory wages alone.
He described the minimum wage as “the floor, not the ceiling,” stressing that CBAs cover critical issues such as career progression, job security, healthcare, pensions, training and workplace protections.
Osifo disclosed that implementation of the current national minimum wage has reached over 95 per cent across states, based on reports presented at the Trade Union Congress (TUC) National Executive Council meeting in December.
However, he warned that celebrating compliance without strengthening CBAs amounts to confusing survival with real progress.
Citing the oil and gas sector as a practical example, Osifo said decades of structured bargaining by PENGASSAN have ensured workers enjoy conditions far above the national minimum wage.
He added that the union, alongside the TUC, is now promoting this CBA-driven model across other sectors, including recent engagements with the Federal Ministry of Health and the National Salaries, Incomes and Wages Commission to encourage comprehensive bargaining in the health sector.