The Nigeria Labour Congress (NLC) has rejected proposed N100,000 minimum wage, arguing that such an amount is inadequate to meet the rising cost of living faced by Nigerian workers.
Speaking in an interview on Sunday, NLC spokesperson, Benson Upah, said a realistic living wage in the current economic climate should be as much as N1 million, citing inflation, currency depreciation and increasing utility costs as major factors affecting workers’ welfare.
His comments came in response to recent remarks by the Chairman of the Nigeria Governors’ Forum (NGF) and Governor of Kwara State, AbdulRahman AbdulRazaq, who disclosed that state governors were considering a minimum wage proposal of N100,000.AbdulRazaq made the disclosure during a Sallah visit to President Bola Tinubu in Lagos, noting that governors were consulting with the Federal Government and organised labour to arrive at a wage structure that balances workers’ welfare with the financial realities of governments.
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In a subsequent social media post, the governor explained that the proposal was driven by rising inflation, increasing living expenses and growing economic pressure on workers across the country.
Reacting to the proposal, Upah acknowledged the governors’ willingness to revisit workers’ salaries but maintained that the figure being considered falls short of what is required under current economic conditions.
“We appreciate the initiative, but N100,000 is nowhere near a realistic living wage for Nigerian workers today,” he said.
According to the labour leader, the continued weakening of the naira, persistent inflation, higher electricity tariffs, increased petrol prices and the impact of recent tax policies have significantly eroded the purchasing power of workers.
“Considering the exchange rate situation, inflationary pressures, increased tariffs, rising fuel costs and the overall decline in workers’ purchasing power, a realistic wage, if current conditions remain unchanged, would be around N1 million,” Upah stated.
He further argued that improved government revenues should make better worker compensation achievable.
“Governments are earning more revenue today. Looking at allocations from the Federation Account Allocation Committee (FAAC), there is enough room to address workers’ welfare. Additional revenue inflows, including gains linked to developments in the global oil market, have also strengthened government finances,” he said.
Upah stressed that investing in workers was essential for national development, describing the workforce as the backbone of any economy.
“The most valuable asset of any nation is its workforce. Workers must be adequately rewarded if productivity and economic growth are to be sustained,” he added.
The debate over wages has intensified since the Federal Government removed fuel subsidies and introduced foreign exchange reforms, both of which have contributed to a sharp increase in the cost of living.
In July 2024, the Federal Government approved a new national minimum wage of N70,000 following months of negotiations with organised labour. The agreement replaced the N30,000 minimum wage that had been in effect since 2019.
Labour unions had initially pushed for a significantly higher figure, arguing that inflation had severely diminished workers’ earnings. Although a compromise was eventually reached at N70,000, labour leaders have continued to insist that the amount is insufficient given prevailing economic realities.
Recent inflation data released by the National Bureau of Statistics has continued to highlight the pressure on household incomes, particularly as food prices and other essential costs remain elevated.
The Nigeria Governors’ Forum is yet to formally submit any new minimum wage proposal to either the Federal Government or organised labour for consideration.
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