N100,000 minimum wage too low, workers deserve N1m — NLC

The Nigeria Labour Congress (NLC) has described the proposed N100,000 national minimum wage being considered by state governors as inadequate, insisting that Nigerian workers deserve as much as N1 million monthly given current economic realities.

 

NLC spokesperson, Benson Upah, stated this while reacting to comments by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, who disclosed that governors were considering a new minimum wage of N100,000.

 

AbdulRazaq had said the proposal was informed by rising inflation, increasing living costs and the growing financial burden on workers, noting that discussions were ongoing among state governments, the Federal Government and organised labour.

 

Responding, Upah said while the governors’ willingness to review wages was commendable, the proposed figure fell far short of what workers require to maintain a decent standard of living.

 

“We consider it thoughtful of the Kwara State governor to propose this, but certainly, N100,000 falls far below the realistic figure,” he said.

 

According to him, the continued depreciation of the naira, rising inflation, higher electricity tariffs, increasing fuel prices, declining purchasing power and the impact of new tax measures have significantly worsened the cost of living.

 

“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 argued that improved government revenues should make better worker remuneration achievable.

 

“In light of the earnings by governments, this should not be a big issue. Check what is being shared at FAAC. The windfall from the Middle East war has put over N5tn in the treasury. Even though this is temporary, it is nonetheless very good for governments,” he added.

 

Upah stressed that the workforce remains a nation’s most valuable asset and should be adequately compensated to promote productivity and economic growth.

 

“The greatest asset of any nation is its workforce,” he said.

 

The wage debate has intensified amid worsening economic conditions following the removal of fuel subsidies and the floating of the naira.

 

Although the Federal Government approved a N70,000 national minimum wage in July 2024 after negotiations with organised labour, labour unions maintain that inflation and rising living costs have significantly eroded its value.

 

Recent increases in electricity tariffs, transportation costs and food prices have further strengthened calls for another wage review, with labour leaders insisting that workers’ salaries should reflect prevailing economic realities.

 

The Nigeria Governors’ Forum has yet to formally present a new minimum wage proposal to the Federal Government or organised labour.