Labour cites inflation, naira depreciation, and soaring living costs as it rejects NGF proposal, urging a wage that reflects Nigeria’s economic realities

The Nigeria Labour Congress (NLC) has firmly rejected the Nigeria Governors’ Forum’s (NGF) proposed N100,000 national minimum wage, arguing that it falls drastically short of what Nigerian workers need to survive in the current economic climate.

Speaking on Sunday, NLC spokesperson Benson Upah said a truly realistic living wage could be as high as N1 million, given the harsh economic realities facing citizens.

His comments came in response to NGF Chairman and Kwara State Governor AbdulRahman AbdulRazaq, who recently revealed that governors are considering N100,000 as a new minimum wage benchmark. The governor made the disclosure during a Sallah visit to President Bola Tinubu in Lagos, noting that discussions were ongoing with the Federal Government and organised labour to arrive at a balanced and sustainable wage structure.

AbdulRazaq had also explained in a Facebook post that the proposal was informed by rising inflation, escalating living costs, and the growing financial strain on Nigerian workers.

While acknowledging the governors’ willingness to review wages, the NLC dismissed the figure as grossly inadequate.

“We consider it thoughtful, but N100,000 is far below any realistic benchmark,” Upah said.

He pointed to mounting economic pressures, including the continued depreciation of the naira, persistent inflation, higher electricity tariffs, rising fuel prices, and shrinking purchasing power. He also referenced the added burden of new tax measures, which have further strained household incomes.

“Given the current realities—exchange rate volatility, inflation, increased tariffs, fuel price hikes, and the erosion of workers’ purchasing power—the realistic figure, even if conditions remain unchanged, would be around N1 million,” he stated.

Upah further argued that government revenues have improved significantly, suggesting that a higher wage should be achievable. He cited allocations from the Federation Account Allocation Committee (FAAC) and noted that recent global developments, including the Middle East crisis, have boosted government earnings.

“In light of what is being shared at FAAC and the revenue windfalls recorded, this should not be a major issue for governments,” he added.

He stressed that investing in workers is critical, describing the workforce as the backbone of any nation’s development.

The disagreement highlights deepening tensions over wage policy as Nigerians grapple with worsening economic hardship following the removal of fuel subsidies and the floating of the naira.

In July 2024, the Federal Government approved a new minimum wage of N70,000 after lengthy negotiations, replacing the N30,000 benchmark set in 2019. However, labour leaders and many workers maintain that the current wage is no longer sufficient amid persistently high inflation.

Latest data from the National Bureau of Statistics shows that both food and headline inflation remain elevated, leaving millions of households struggling to meet basic needs.