NLC REJECTS N100,000 MINIMUM WAGE PROPOSAL, DEMANDS N1M MONTHLY PAY

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By: Muftau Fatimo

The Nigeria Labour Congress has dismissed the proposal of N100,000 as minimum wage by the Nigeria Governors’ Forum, insisting that a realistic living wage under the current economic conditions should be as high as N1m.

The NLC spokesperson, Benson Upah, stated this in an interview with The PUNCH on Sunday.

His reaction followed comments by the NGF Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, who disclosed that governors were considering a new national minimum wage of N100,000.

AbdulRazaq, speaking during the Sallah homage to President Bola Tinubu in Lagos, said governors were already engaging the Federal Government and organised labour to arrive at a wage structure that balances workers’ welfare with fiscal sustainability.

The labour leader cited the continued depreciation of the naira, rising inflation, increase in electricity tariffs, higher fuel prices, declining purchasing power and the impact of new tax measures as factors making a substantially higher wage necessary.

“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 argued that government revenues had improved significantly and should support enhanced remuneration for workers.

“In light of the earnings by governments, this should not be a big issue.

“Look at the allocations being distributed through FAAC. The revenue gains resulting from the Middle East conflict have added more than N5 trillion to government coffers. While the development may be temporary, it has significantly boosted government revenues,” he said.

The NLC spokesperson also emphasised that a nation’s workforce remains its most critical asset and should be adequately remunerated to drive productivity and sustainable economic growth.

He added, “It is important to remember that the greatest asset of any nation is its workforce.”

The debate over workers’ wages 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 prolonged negotiations with organised labour.

Before the agreement was reached, organised labour had demanded a significantly higher wage, arguing that workers’ incomes had been severely eroded by inflation.

While the Federal Government initially proposed lower figures, negotiations eventually produced the N70,000 benchmark, replacing the previous N30,000 minimum wage signed into law in 2019.

However, labour leaders have repeatedly maintained that the current wage remains inadequate in the face of persistent inflation and the rising cost of living

Data from the National Bureau of Statistics has continued to show elevated food and headline inflation rates, with many workers struggling to meet basic household expenses despite the wage increase.

The Nigeria Governors’ Forum has yet to formally present any proposal on a new minimum wage framework to the Federal Government or organised labour.