Labour Day 2025: Minimum Wage Raised, But Are Nigerian Workers Really Better Off?

Every year on May 1st, Nigeria joins the rest of the world in celebrating Labour Day, also known as Workers’ Day. It is a day dedicated to honoring the contributions of workers to national development, and it provides an opportunity to spotlight issues affecting the Nigerian workforce. As Nigerians celebrate Workers’ Day, the conversation about the effectiveness of the newly approved ₦70,000 minimum wage has gained momentum, with workers, unions, and government officials all weighing in.

The Minimum Wage Debate: ₦30,000 to ₦70,000

In 2024, the Nigerian government increased the national minimum wage from ₦30,000 to ₦70,000 following intense negotiations with labour unions. This increase was aimed at addressing the rising inflation and the economic struggles faced by Nigerian workers. While many viewed this wage hike as a positive step, the reality is that it barely scratches the surface of what is needed to provide a decent standard of living for workers, especially in urban areas where living costs are significantly higher.

States Implementing the ₦70,000 Minimum Wage

As of early 2025, about 20 states have begun paying the new minimum wage. These include states like Lagos, Rivers, Akwa Ibom, Enugu, and Adamawa. However, the implementation has been uneven, with some states paying the full ₦70,000 while others have made partial adjustments.

Despite the federal government’s directive, many states, especially in the northern regions, have yet to fully comply, citing financial constraints and limited resources, leaving workers in these areas to struggle with the rising cost of living. This inconsistency in wage payment has sparked frustration among workers and labour unions, who argue that the wage should be uniformly implemented across all states.

The Cost of Living in Nigeria: Is ₦70,000 Enough?

Despite the increase in the minimum wage, Nigerian workers continue to face a harsh economic reality. Inflation has reached an all-time high, and the cost of basic goods such as food, transportation, and housing has skyrocketed. According to the Anker Living Wage Reference, a family in rural Nigeria requires ₦307,691 per month to meet basic needs, far above the ₦70,000 minimum wage. In urban centers like Lagos and Abuja, this figure is likely even higher. This gap between wages and living costs highlights the insufficiency of the new wage in providing a decent standard of living for most workers.

Government’s Response: Actions and Initiatives

The Nigerian government has taken several steps to address the concerns of workers. In addition to approving the new minimum wage, the government has introduced job creation schemes, tax incentives for small businesses, and efforts to stimulate the economy. However, critics argue that these efforts are insufficient and do not address the root causes of inflation and economic inequality. Structural reforms aimed at stabilizing inflation, controlling the cost of living, and improving public services are seen as essential to making the minimum wage more meaningful for workers.

Labour Unions: The Push for Fair Wages and Improved Conditions

Labour unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have been vocal in their criticism of the new minimum wage. While they acknowledge the increase, they argue that it is not enough given the current economic climate. The unions have called for regular wage reviews that are tied to inflation rates and have demanded that the government do more to protect workers’ rights and welfare.

The Plight of Nigerian Workers: Struggling to Make Ends Meet

Despite the wage increases, many Nigerian workers are still struggling to make ends meet. The combination of low wages, high inflation, and poor public services means that many workers are forced to take on additional jobs or rely on informal lending groups to cover basic expenses. For many, the wage increase is not enough to cover essential needs such as food, transportation, healthcare, and rent. This situation is particularly dire in urban areas, where the cost of living is highest.

Labour Day 2025 should serve as more than just a celebration of Nigerian workers; it should be a call to action. The gap between wages and the cost of living in Nigeria is a stark reminder that economic policies must prioritize the welfare of workers. Raising the minimum wage is a start, but it is not enough. Nigeria needs a living wage that reflects the actual cost of living, not just a nominal increase in pay. Until then, the struggle for workers’ rights and economic justice will continue.