Nigeria’s labour unions are engaged in a high-stakes negotiation with the government, pushing for a significant increase in the national minimum wage to address the pressing economic realities faced by workers across the country. The Explainer gathered that the Nigeria Labour Congress (NLC) has tabled a demand for a new minimum wage of ₦615,000 per month, a substantial jump from the current ₦30,000 floor.
According to the NLC President, Joe Ajaero, this proposal reflects the extensive consultations between the NLC and the Trade Union Congress (TUC), who have reached a consensus on the need for a drastic wage increase.
“The current minimum wage of ₦30,000 is woefully inadequate to sustain the average Nigerian worker,” Ajaero emphasized. “The soaring cost of living and the devastating impact of inflation have pushed many of our members into poverty, and we can no longer accept this status quo.”
The push for a higher minimum wage comes as labour leaders have lamented the failure of some state governors to fully implement the existing wage structure, which is set to expire in April, five years after the enactment of the Minimum Wage Act of 2019 by former President Muhammadu Buhari.
“The Minimum Wage Act stipulates periodic reviews every five years to align with the evolving economic realities faced by workers,” explained Dr. Amina Suleiman, an economist at the University of Abuja. “However, the lack of compliance by some state governments has exacerbated the plight of Nigerian workers.”
Both the NLC and the TUC have consistently urged the administration of President Bola Tinubu to expedite the process of revising wage awards, with earlier proposals ranging from ₦1 million per month by the NLC to ₦447,000 per month by the TUC. The latest joint submission, however, has settled on ₦615,000 as the new minimum wage target.
Labour representatives have underscored the detrimental impact of inflation, which soared to 31.70% as of February 2024, and have argued that state governors are well-positioned to meet the proposed wage increase, given the enhanced monthly revenue allocations allocated by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).
“The government has the capacity to pay this proposed wage increase,” asserted Ajaero. “The economic challenges facing Nigerian workers are severe, and we cannot afford to delay any further. It is time for decisive action to improve the living standards of our members.”
As the Tripartite Committee on National Minimum Wage continues its deliberations, the outcome of these negotiations will have far-reaching implications for the country’s workforce and the broader economic landscape.
