Despite the nationwide adoption of the new minimum wage law across all 36 states and the FCT, Nigerian workers are grappling with the high cost of living, leading labour unions to raise fresh concerns about the real value of their wages.
According to recent findings, while the Federal Government pegged the minimum wage at N70,000, states have averaged N73,471.43 — just a 5% increase. States like Akwa Ibom, Lagos, Bayelsa, and Rivers are reportedly offering higher wages, yet inflation continues to erode purchasing power.
Barely a year after the wage increase took effect, inflation has already stripped it of real value. Labour leaders argue that the government’s move to raise wages has been neutralized by skyrocketing prices of essentials like food, fuel, transportation, rent, and electricity.
With headline inflation at 24%, the real value of the new wage has dropped by more than 25%. Analysts estimate that N70,000 today is worth less than N55,000 compared to last year. A shocking stat from the NBS reveals that feeding one adult daily on a healthy diet costs N1,255 — totaling over half of the N70,000 salary per month.
To make matters worse, most state governments have failed to implement the consequential adjustments — additional raises meant to reflect inflation — as agreed in the wage law. Enugu, for instance, is still in negotiation, although it has begun provisional payments of N80,000.
NASU’s General Secretary, Peters Adeyemi, praised the new three-year renegotiation cycle, calling the previous five-year period unrealistic for Nigeria’s volatile economy. He emphasized that inflation, PMS prices, and naira devaluation are the true enemies of Nigerian workers.
NLC President, Joe Ajaero, echoed these sentiments, pointing fingers at the government for breaking its promise not to increase petrol prices — a major factor that worsened the cost of living. He said workers initially pushed for N250,000 but had to settle for N70,000 under strict conditions, which were later violated.
Human Rights activist Emmanuel Onwubiko criticized the wage as being one of the lowest globally, especially for a currency that has lost more than 100% of its value in a year. He argued that N70,000 cannot sustain even a family of three in today’s economy.
While some believe states can diversify into business ventures to raise more revenue, Onwubiko urged caution. He pointed out that the success of Akwa Ibom’s aviation venture is an exception, and warned states like Enugu and Kogi against trying to replicate such projects without proper groundwork and infrastructure.
Investment banker Tolulope Alayande supported the labour unions’ push for shorter negotiation intervals, calling it a necessary step to match wages with the economic reality. He admitted that N70,000 is far from enough but believes the removal of fuel subsidies, although painful, was necessary.
In summary, while the minimum wage increase is a step in the right direction, the combined forces of inflation, fuel deregulation, and a weak naira are crushing its benefits. Labour unions are now gearing up for another round of negotiations by 2027, determined to secure a wage that truly reflects Nigeria’s economic climate.
Do you think the current minimum wage is enough for the average Nigerian worker? Share your thoughts in the comments and follow NIGPOST for updates on labour issues and wage negotiations across Nigeria.
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