Federal Workers Demand N300,000 Minimum Wage as Loan App Debt Rises

Federal workers are demanding an immediate increase in the minimum wage to N300,000, saying rising living costs have pushed some employees into debt with microfinance institutions and digital loan platforms to meet basic expenses.

The demand was contained in a September 2, 2026 letter by the Federal Workers Forum (FWF) to President Bola Tinubu and the National Assembly.

The forum also proposed a new salary structure that would raise the pay of Level 17 officers to N1.5 million, arguing that the existing wage structure no longer reflects the economic realities facing federal employees.

“We call for justice and immediate wage review now, adjust the federal minimum wage to N300,000 and a maximum wage of N1.5m for the Level 17 officers,” the workers said.

The FWF said the pressure on workers has gone beyond reduced purchasing power, with some employees increasingly relying on digital credit to meet everyday expenses.

“Federal workers are now heavily indebted to microfinances and, most times, federal workers resort to phone loan apps to get transportation to work,” the forum stated.

The claim highlights the growing connection between Nigeria’s cost-of-living crisis and the digital lending industry, as salaried workers facing cash-flow shortages turn to short-term credit to bridge gaps before payday.

The forum also said some workers have resorted to using firewood because they can no longer afford cooking gas.

Under the proposed structure, Level 1 Step 1 workers would earn N300,000, with salaries increasing progressively across the civil service.

Level 2 workers would earn N330,000, Level 3 N360,000, Level 4 N390,000, Level 5 N420,000 and Level 6 N450,000.

The proposed salary rises to N480,000 for Level 7, N510,000 for Level 8, N550,000 for Level 9, N600,000 for Level 10, N700,000 for Level 12, N750,000 for Level 13, N800,000 for Level 14, N1 million for Level 15, N1.2 million for Level 16 and N1.5 million for Level 17 officers.

The FWF said the N300,000 proposal was based on estimated monthly spending on food, transport, accommodation, electricity, cooking gas, communications, water and family support.

“Our projections here are fair, and we believe it can still be accommodated in the present budget based on the daily increased earnings and the excess crude oil sales earnings,” the forum said.

The workers also argued that the N70,000 minimum wage introduced in 2024 has not been fully implemented for federal civil servants.

The new wage replaced the previous N30,000 benchmark following negotiations between the Federal Government and organised labour.

According to the FWF, federal workers effectively received only a N40,000 addition across salary levels, without the full consequential adjustments and associated allowances.

“It will surprise you to hear that the Federal Government has not fully implemented the new national minimum wage since July 2024,” the forum said.

The group is demanding payment of outstanding salaries, promotion arrears and other entitlements, as well as the implementation and payment of arrears of the 40 per cent peculiar allowance.

Beyond the minimum wage, the forum is seeking a permanent Cost of Living Allowance, Family Support Allowance, improved health insurance, housing and car loan schemes and better pension arrangements.

It also called for reduced taxation on workers’ allowances and free education for the children of federal workers and pensioners in federal institutions.

The workers linked the wage demand to rising prices of food, transportation, accommodation, electricity and cooking gas.

“Federal workers have been enduring the situation, and everything has been frustrating and nauseating. We cannot cope again,” the forum stated.

The workers’ claims point to a broader pressure point for Nigeria’s digital-finance ecosystem.

When wages fail to keep pace with essential expenses, short-term digital loans can provide immediate liquidity for consumers, but repeated borrowing can also increase household debt burdens.

The FWF’s reference to workers using loan apps for transportation suggests that digital credit is increasingly being used not only for discretionary consumption but also to cover routine living and work-related expenses.

The forum is asking the National Assembly to take up its demands with President Tinubu, insisting that federal workers should not have to wait until July 2027 for a wage review.

“Federal workers have suffered enough,” the group said, describing the period since the removal of fuel subsidy as years of hardship.

The proposed wage increase will ultimately require government consideration of its fiscal implications, including the effect of a higher public-sector wage bill on government spending, inflation and other budget priorities.