NLC Says N100,000 Minimum Wage ‘Unrealistic,’ Calls for N1 Million Amid Inflation

The Nigeria Labour Congress has called a proposed N100,000 national minimum wage “unrealistic,” arguing Nigerian workers should earn up to N1 million monthly given current economic conditions.

NLC spokesperson Benson Upah made the remarks Sunday in an interview with The PUNCH, responding to comments by Nigeria Governors’ Forum Chairman AbdulRahman AbdulRazaq that governors were considering a new N100,000 minimum wage.

AbdulRazaq, governor of Kwara State, said in a Facebook post Saturday that rising inflation, higher living costs and the “growing financial burden on Nigerian workers” informed the proposal. He said state governments were engaging the Federal Government and organized labour on a wage structure that balances workers’ welfare with fiscal sustainability.

Upah said the governors’ review was “thoughtful” but N100,000 “falls far below the realistic figure.”

He cited naira depreciation, inflation, increased electricity tariffs, higher fuel prices, declining purchasing power and new tax measures as factors requiring a “substantially higher wage.”

“Given the realities around the exchange rate, inflation, raised tariffs, the surge in the pump price of petrol and associated costs, the decline in the purchasing power of the average worker, and the effects of the new tax regime on our cost of living, the realistic figure, subject to status quo maintenance, would be N1 million,” Upah said.

“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. Even though this is temporary, it is nonetheless very good for governments,” he added.

Upah said the workforce “remains the greatest asset of any nation” and should be adequately compensated to ensure productivity and growth.

The Federal Government approved a new N70,000 national minimum wage in July 2024 after negotiations with labour. Unions say inflation and rising costs have since eroded its value.

Recent hikes in electricity tariffs, transport fares and food prices have renewed calls for another wage review. Labour leaders argue salaries should reflect current realities.

The Nigeria Governors’ Forum has not formally presented a new minimum wage framework to the Federal Government or organised labour.