The Nigeria Labour Congress (NLC) has rejected the proposed N100,000 national minimum wage being considered by the Nigeria Governors’ Forum (NGF), arguing that the amount falls short of what Nigerian workers need to survive under current economic conditions.
The position was made known by the NLC spokesperson, Benson Upah, during an interview with The PUNCH on Sunday.
His comments followed remarks by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, who revealed that state governors were considering a new minimum wage benchmark of N100,000.
Speaking during the Sallah homage to President Bola Tinubu in Lagos, AbdulRazaq said governors were already engaging with the Federal Government and organised labour to develop a wage structure that balances workers’ welfare with fiscal sustainability.
In a Facebook post on Saturday, the governor explained that the proposal was influenced by rising inflation, increasing living expenses, and the growing financial pressure on Nigerian workers.
Responding to the proposal, Upah acknowledged the governors’ efforts but maintained that the suggested amount was inadequate when measured against current economic realities.
“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 labour leader pointed to several economic challenges, including the depreciation of the naira, persistent inflation, higher electricity tariffs, rising petrol prices, reduced purchasing power, and the impact of recent tax measures, as reasons workers require a significantly higher wage.
“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.
Upah further argued that increased government revenue should make improved worker compensation achievable.
“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.
The NLC spokesman also stressed the importance of investing in the nation’s workforce, describing workers as the backbone of economic growth and national development.
“Finally, please note that the greatest asset of any nation is its workforce,” he said.
The debate over minimum wage has intensified amid worsening economic conditions following the removal of fuel subsidies and the floating of the naira by the Federal Government.
In July 2024, the Federal Government approved a new national minimum wage of N70,000 after extensive negotiations with organised labour.
Before the agreement was reached, labour unions had pushed for a much higher wage, arguing that inflation had significantly eroded workers’ earnings and purchasing power.
Although the government initially proposed lower figures, negotiations eventually led to the adoption of the N70,000 minimum wage, replacing the previous N30,000 benchmark introduced in 2019.
However, labour leaders have continued to insist that the current wage structure is insufficient due to persistent inflation and the rising cost of living.
Recent data from the National Bureau of Statistics (NBS) has continued to indicate elevated food and headline inflation rates, leaving many workers struggling to meet basic household needs despite the wage increase.
The Nigeria Governors’ Forum has yet to formally submit a proposal on a revised minimum wage framework to either the Federal Government or organised labour.
Discover more from LN247
Subscribe to get the latest posts sent to your email.
