Shipping Agencies Approve N200,000 Minimum Wage for Workers

Shipping agencies, operating under the Shipping Agencies, Clearing, and Forwarding Employers Association (SACFEA), have agreed to set a minimum wage of N200,000 for their employees.

The agreement was formalized during a signing ceremony between SACFEA and the Maritime Workers Union of Nigeria (MWUN), organized by the Nigerian Shippers’ Council and supported by the Ministry of Marine and Blue Economy. This marks the end of a 20-year struggle for better wages.

Speaking at the signing event in Lagos, SACFEA President Mrs. Boma Alabi (SAN) highlighted that the new minimum wage standard for shipping workers is the highest across any industry in the country.

“The most significant thing is that, in establishing a minimum standard for the shipping industry, we have exceeded the standards of any other industry in Nigeria. The national minimum wage is set at N70,000, which was a challenging figure to agree upon with the Federal Government. With today’s agreement, our minimum wage is set at N200,000—almost three times the national standard,” Alabi stated.

While workers initially requested a minimum wage of N160,000, Alabi pointed out that employers opted for N200,000, demonstrating their understanding of the economic situation and their desire to ensure workers are not just surviving but can also save for the future.

Alabi expressed optimism that this new wage agreement would contribute to the growth of the nation's blue economy by setting uniform standards and boosting productivity and efficiency.

“With these minimum standards, we will eliminate unqualified individuals from the industry. We are also keeping an eye on global developments to further enhance practices in Nigeria. One key challenge in the country is the cost of doing business; this agreement aims to help reduce those costs and improve our competitive edge,” she added.

The Minister for Marine and Blue Economy, Adegboyega Oyetola, also spoke at the event, encouraging workers to increase their productivity and efficiency in response to the improved conditions provided by their employers.

“I urge labor unions to continue their diligent advocacy for workers’ rights by ensuring adherence to these agreed standards,” Oyetola said.

He further assured that the government would continue to offer oversight and create a conducive environment for compliance and ongoing improvement.

“As we move forward, it’s essential for all parties to honor this agreement. Employers should see these conditions as a means to foster a positive work environment,” the Minister added.

MWUN President General, Adewale Adeyanju, expressed the union’s appreciation for achieving this milestone and promised enhanced performance from shipping workers.

“While we celebrate this success, we must remember that our work continues. We will keep advocating for the rights and interests of maritime workers and strive for harmonious industrial relations,” Adeyanju stated.

Adeyanju, who also serves as the Deputy President of the Nigeria Labour Congress, reiterated MWUN’s commitment to collaborate with all stakeholders for the benefit of the industry.

Earlier, Pius Akutah, Executive Secretary of the Nigerian Shippers’ Council, credited the achievement to the exemplary leadership of Minister Oyetola and commended the efforts of MWUN and SACFEA leaders.

Akutah emphasized that this success reflects Minister Oyetola’s dedication to worker welfare and acknowledged the ministry's improvements through teamwork and collaboration.

In April, MWUN announced that it had finally reached an agreement with employers in the shipping industry on minimum wage standards for workers, bringing an end to over two decades of negotiations.

Previously, MWUN had declared a state of emergency in the maritime sector following numerous unsuccessful negotiations with shipping companies for better welfare and working conditions for its members.

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