N1m living wage is the realistic benchmark for Nigerian workers, the NLC says, rejecting a proposed N100,000 minimum wage

The Nigeria Labour Congress has rejected a proposal for a N100,000 national minimum wage, insisting that a N1m Living Wage would more accurately reflect the economic realities facing Nigerian workers amid rising inflation and living costs.

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The position was stated by the Head of Information and Public Affairs of the Nigeria Labour Congress, Benson Upah, in response to comments made 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 benchmark of N100,000.

AbdulRazaq made the disclosure during a Sallah homage to President Bola Tinubu in Lagos, where he said state governors were engaging with the Federal Government and organised labour to develop a wage structure that balances workers’ welfare with fiscal sustainability.

In a subsequent Facebook post, the governor explained that the proposal was influenced by rising inflation, increasing living expenses and the growing financial pressures confronting workers across the country.

Reacting to the proposal, Upah described the initiative as thoughtful but argued that the suggested amount falls significantly short of what workers require to maintain a reasonable standard of living.

“We consider it thoughtful of the Kwara State Governor for proposing this, but certainly, N100,000 falls far below or behind the realistic figure,” Upah said.

The labour spokesman cited the depreciation of the naira, persistent inflation, rising electricity tariffs, higher petrol prices and declining purchasing power as key factors driving the demand for a substantially higher wage.

According to Upah, the impact of recent tax measures and broader economic reforms has further increased the financial burden on workers and their families.

“Given the realities around the exchange rate, inflation, raised tariffs, surge in the pump price of petrol and associated costs, decline in the purchasing power of the average worker, effects of the new regime of taxes on our cost of living, the realistic figure, subject to status quo maintenance, would be N1m,” he stated.

Upah also argued that improved government revenues provide room for a more ambitious wage review.

He pointed to increased allocations from the Federation Account Allocation Committee and additional revenue linked to global oil market developments as indicators that governments are in a stronger financial position than in previous years.

“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. Though this is temporary, it is nonetheless very good for governments,” he said.

The labour leader further emphasised the strategic importance of the workforce to national development, describing workers as the country’s greatest asset.

“Finally, please note that the greatest asset of any nation is its workforce,” Upah added.

The renewed debate over wages comes against the backdrop of ongoing economic challenges following the removal of fuel subsidies and the floating of the naira, reforms that have contributed to higher living costs despite government assurances of long-term benefits.

In July 2024, the Federal Government approved a new national minimum wage of N70,000 after months of negotiations with organised labour.

The agreement replaced the previous N30,000 minimum wage enacted in 2019 and followed intense discussions between labour unions, state governments and federal authorities.

Although the wage increase was welcomed at the time, labour leaders have repeatedly argued that inflation has eroded its value, leaving many workers struggling to meet basic household expenses.

Recent inflation data from the National Bureau of Statistics has continued to highlight pressure on food prices and consumer spending, reinforcing calls for a more robust review of workers’ earnings.

While the Nigeria Governors’ Forum has not formally submitted any proposal on a revised wage framework to either the Federal Government or organised labour, the discussion has already reignited a national conversation about fair compensation, economic sustainability and the welfare of Nigerian workers.

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The coming months are expected to see further negotiations as labour unions and government officials seek common ground on a wage structure capable of addressing the country’s evolving economic realities.