NLC rejects proposed N100,000 minimum wage, says workers need N1m

The Nigeria Labour Congress (NLC) has dismissed suggestions that a new national minimum wage of N100,000 would be adequate for Nigerian workers, insisting that a realistic living wage under current economic conditions should be around N1 million.

The position was stated by the NLC’s spokesperson, Benson Upah, in reaction to comments by the Chairman of the Nigeria Governors’ Forum (NGF) and Governor of Kwara State, AbdulRahman AbdulRazaq, who said governors were considering a new minimum wage of N100,000.

AbdulRazaq had disclosed during a Sallah homage to President Bola Tinubu in Lagos that state governors were engaging the Federal Government and organised labour to arrive at a wage structure that would improve workers’ welfare while remaining fiscally sustainable.

The governor also noted in a social media post that the proposal was driven by rising inflation, increasing living costs and the growing financial pressures facing Nigerian workers.

However, Upah who spoke to Punch Newspaper, argued that while the governors’ willingness to review wages was welcome, the proposed N100,000 fell short of what workers require to survive in the current economic climate.

“We appreciate the fact that the governor is thinking in that direction, but N100,000 is far below a realistic living wage,” he said.

According to him, the economic challenges confronting workers have worsened significantly, making a much higher wage imperative.

He cited the depreciation of the naira, persistent inflation, increases in electricity tariffs, rising fuel prices, declining purchasing power and the effects of new tax measures as factors that have substantially increased the cost of living.

“Considering the exchange rate situation, inflation, higher utility tariffs, increased petrol prices and the overall erosion of workers’ purchasing power, a realistic wage, if current conditions remain unchanged, should be around N1 million,” Upah stated.

The labour leader also maintained that governments now have greater financial capacity to support improved wages, pointing to increased allocations from the Federation Account Allocation Committee (FAAC).

He noted that recent developments in the global oil market, including the impact of tensions in the Middle East, had boosted government revenues.

“In view of the earnings available to governments, this should not be difficult. Recent revenue inflows have significantly improved the financial position of the various tiers of government,” he said.

Upah further stressed that workers remain the backbone of national development and should be adequately compensated to enhance productivity and economic growth.

“The workforce is the greatest asset of any nation and must be properly rewarded,” he added.

The debate over wage review has intensified in recent months as Nigerians continue to grapple with rising living costs following major economic reforms, including the removal of fuel subsidies and the floating of the naira.

The Federal Government approved a new national minimum wage of N70,000 in July 2024 after months of negotiations with organised labour, replacing the N30,000 minimum wage introduced in 2019.

Despite the increase, labour unions have consistently argued that the current wage is insufficient, citing soaring inflation and the growing difficulty workers face in meeting basic needs.

Although the Nigeria Governors’ Forum has yet to formally submit any new wage proposal to the Federal Government or organised labour, the latest remarks by its chairman have renewed discussions about the need for another review of workers’ salaries.