The Nigeria Labour Congress (NLC) has strongly refuted the proposed N100,000 national minimum wage being considered by state governors, asserting that Nigerian workers deserve a monthly income of N1 million to cope with the current economic realities.
Benson Upah, spokesperson for the NLC, described the N100,000 figure as unrealistic during an interview with The PUNCH. This statement comes in response to comments by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, who indicated that governors were contemplating a new national minimum wage of N100,000.
AbdulRazaq had previously stated that the proposal was influenced by rising inflation, increasing living costs, and the growing financial strain on Nigerian workers. He mentioned that state governments were in discussions with the Federal Government and organised labour to establish a wage structure that balances worker welfare with fiscal sustainability.
Upah acknowledged the governors’ consideration of a wage review but maintained that N100,000 falls significantly short of workers’ needs. He highlighted the continuous depreciation of the naira, escalating inflation rates, higher electricity tariffs, increased fuel prices, declining purchasing power, and the impact of new tax measures as critical factors necessitating a substantially higher wage.
“Given the realities around the exchange rate, inflation, raised tariffs, the surge in the pump price of petrol and associated costs, the decline in the purchasing power of the average worker, and the effects of the new tax regime on our cost of living, the realistic figure, subject to status quo maintenance, would be N1 million,” Upah stated.
The labour leader further argued that government revenues have seen significant improvements, which should enable better remuneration for workers. He pointed to the substantial funds being shared at the Federation Account Allocation Committee (FAAC) meetings, noting a windfall of over N5 trillion from the Middle East war, which, though temporary, has greatly benefited government coffers.
Upah emphasised that the workforce is the most valuable asset of any nation and must be adequately compensated to ensure productivity and foster economic growth. The ongoing debate over workers’ wages has gained momentum due to the deteriorating economic climate, exacerbated by the removal of fuel subsidies and the floating of the naira by the Federal Government.
In July 2024, the Federal Government approved a new national minimum wage of N70,000 following extensive negotiations with organised labour. However, labour unions continue to argue that inflation and the rising cost of living have substantially eroded the value of this wage. Recent increases in electricity tariffs, transportation costs, and food prices have further fuelled demands for another wage review, with labour leaders insisting that salaries must reflect current economic conditions.
The Nigeria Governors’ Forum has not yet formally presented any proposal regarding a new minimum wage framework to the Federal Government or organised labour.
