Labour Rejects N100,000 Minimum Wage Proposal as Inflation Squeezes Household Incomes

By Àkànní Olúwaségún Michael

The Nigeria Labour Congress (NLC) has rejected a proposed N100,000 minimum wage being considered by state governors, arguing that the figure is insufficient to shield workers from mounting inflationary pressures and the rising cost of living.

The labour union said Nigerian workers require a significantly higher wage to cope with current economic realities, citing persistent inflation, naira depreciation, rising energy costs and declining purchasing power.

Benson Upah, spokesperson for the NLC, said a realistic living wage under prevailing conditions would be around N1 million per month, a position that underscores growing concerns over the widening gap between wages and household expenses.

His comments followed remarks by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, who disclosed that governors were considering a N100,000 wage benchmark as part of ongoing consultations with the Federal Government and organised labour.

While welcoming the willingness of governors to review workers’ salaries, Upah argued that the proposed figure does not reflect the realities confronting millions of Nigerian households.

“We appreciate the initiative, but N100,000 is nowhere near a realistic living wage for Nigerian workers today,” he said.

According to him, the cumulative effects of exchange-rate volatility, elevated inflation, higher electricity tariffs, increased fuel costs and tax-related pressures have significantly reduced the real value of workers’ earnings.

“Considering the exchange rate situation, inflationary pressures, increased tariffs, rising fuel costs and the overall decline in workers’ purchasing power, a realistic wage, if current conditions remain unchanged, would be around N1 million,” Upah stated.

The labour union’s position comes at a time when many households continue to struggle with high food prices and transportation costs despite recent efforts by policymakers to stabilise the economy. Analysts say inflation has remained one of the biggest threats to consumer welfare, eroding disposable incomes and forcing families to cut spending on non-essential goods and services.

The debate also reflects growing pressure on governments to ensure that wage growth keeps pace with the rising cost of living. Since the removal of petrol subsidies and the liberalisation of the foreign exchange market, businesses and consumers have faced significantly higher operating and living costs.

Upah argued that improved government revenues should create room for enhanced worker compensation. According to him, allocations from the Federation Account Allocation Committee (FAAC) have increased in recent years, while higher oil-related revenues have strengthened public finances.

“Governments are earning more revenue today. Looking at allocations from the Federation Account Allocation Committee, there is enough room to address workers’ welfare. Additional revenue inflows linked to developments in the global oil market have also strengthened government finances,” he said.

The renewed push for wage adjustments comes less than two years after the Federal Government approved a N70,000 national minimum wage in July 2024, replacing the N30,000 benchmark that had been in effect since 2019.

Although the increase was hailed as a major victory for organised labour, rising inflation has since diminished much of its purchasing power.

Labour unions have consistently maintained that the current minimum wage is no longer adequate to meet basic household needs, particularly as food, housing, healthcare and transportation costs continue to rise.