The Nigeria Labour Congress (NLC) has dismissed a proposal by state governors to raise the national minimum wage to ₦100,000, arguing that workers require a far higher income to withstand the country’s deepening cost-of-living crisis.
NLC said a realistic living wage under current economic conditions could be as high as ₦1m a month, highlighting the growing gulf between organised labour and government officials over how to address the impact of inflation and economic reforms on workers.
The intervention came after the chairman of the Nigeria Governors’ Forum (NGF) and governor of Kwara State, AbdulRahman AbdulRazaq, disclosed that state governors were considering a new national minimum wage of ₦100,000.
Speaking during a Sallah homage to President Bola Tinubu in Lagos, AbdulRazaq said discussions were ongoing between the governors, the Federal Government and organised labour to develop a wage framework that would improve workers’ welfare without undermining fiscal sustainability.
In a subsequent social media post, the governor said the proposal reflected the realities of rising inflation, increasing living costs and mounting financial pressures on Nigerian households.
But the NLC described the figure as inadequate and out of touch with the economic challenges confronting workers.
“We consider it thoughtful of the Kwara State Governor for proposing this, but certainly, ₦100,000 falls far below the realistic figure,” the union’s spokesperson, Benson Upah, told media.
Upah argued that the sharp depreciation of the naira, persistent inflation, higher electricity tariffs, increased fuel prices and new tax measures had dramatically eroded workers’ purchasing power.
“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 ₦1m,” he said.
The labour leader also contended that improved government revenues should make a substantial wage increase possible.
“In light of the earnings by governments, this should not be a big issue,” he said.
“Check what is being shared at FAAC. The windfall from the Middle East war has put over ₦5tn in the treasury. Though this is temporary, it is nonetheless very good for governments.”
The debate over workers’ pay has intensified since the Federal Government removed fuel subsidies and liberalised the foreign exchange market, reforms that supporters say were necessary to stabilise the economy but which have also contributed to a sharp rise in living costs.
In July 2024, the Federal Government approved a new national minimum wage of ₦70,000 following months of negotiations with organised labour, replacing the ₦30,000 benchmark introduced in 2019.
The agreement ended a protracted dispute in which labour unions had demanded significantly higher wages, arguing that soaring inflation had severely diminished the value of workers’ earnings.
Despite the increase, labour leaders have repeatedly insisted that the current minimum wage no longer reflects economic realities, with many workers struggling to meet basic household expenses.
Recent data from the National Bureau of Statistics has continued to point to elevated food and consumer prices, placing additional pressure on households already coping with higher transport, energy and housing costs.
Upah said the debate should not be viewed solely through the lens of government expenditure, arguing that investment in workers was essential to national development.
“The greatest asset of any nation is its workforce,” he said.
While the governors’ forum has publicly floated the idea of a ₦100,000 minimum wage, no formal proposal has yet been submitted to either the Federal Government or organised labour, leaving the prospect of another round of wage negotiations on the horizon.
