NLC Rejects N100,000 Minimum Wage, Demands N1 Million for Nigerian Workers

NLC has faulted the N100,000 minimum wage proposal being considered by state governors.

Philips News reports that the Nigeria Labour Congress (NLC) has rejected the proposal by state governors to raise the national minimum wage to N100,000, arguing that the amount is insufficient to meet the needs of workers amid the country’s worsening economic challenges. The labour union instead maintained that a realistic living wage should be around N1 million, considering the current cost of living and declining purchasing power of citizens.

NLC spokesperson Benson Upah made the position known in an interview with PUNCH while reacting to recent remarks by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq. The governor had revealed that state governors were considering a N100,000 minimum wage and were already consulting with the Federal Government and labour leaders to arrive at a sustainable salary structure for workers.

In a Facebook post on Saturday, Governor AbdulRazaq added that the proposal was informed by rising inflation, increasing living costs and the growing financial burden on Nigerian workers.

Reacting to the proposal, NLC spokesperson said although the governors’ willingness to review workers’ salaries is a positive step, the proposed figure falls far short of what is required in today’s economic environment.

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

The NLC spokesperson pointed to the persistent rise in inflation, the weakening value of the naira, higher electricity tariffs, increased fuel prices, and additional tax burdens as key factors that have significantly reduced the earning power of the average Nigerian worker.

“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.

The NLC spokesman argued that government revenues had improved significantly and should support enhanced remuneration for workers.

“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 added.

Upah further stressed that the workforce remains the most valuable asset of any nation and should be adequately compensated to ensure productivity and economic growth.

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

Discussions surrounding workers’ pay have continued to gain momentum as Nigerians grapple with the economic impact of major policy changes, including the removal of petrol subsidies and the liberalisation of the foreign exchange market. These developments have contributed to a sharp rise in the cost of living, placing additional pressure on workers across the country.

After months of negotiations between the Federal Government and organised labour, a new national minimum wage of N70,000 was approved in July 2024. The agreement marked a significant increase from the previous N30,000 minimum wage that had been in effect since 2019.

Meanwhile, PhilipsNews reports that Labour unions had initially pushed for a much higher wage, arguing that soaring inflation and the declining purchasing power of the naira had drastically reduced the value of workers’ earnings. Although the government began negotiations with lower proposals, both sides eventually settled on the N70,000 figure. Despite the increase, labour leaders continue to insist that the current minimum wage is no longer sufficient to meet the growing financial demands faced by Nigerian workers.