NLC demands immediate minimum wage review

The Nigeria Labour Congress (NLC) has called for the immediate commencement of negotiations on a new national minimum wage, insisting that rising inflation, the declining value of the naira and increasing living costs have eroded the benefits of the current ₦70,000 minimum wage.

NLC President, Comrade Joe Ajaero, made the call on Tuesday in Abuja at the launch of an investigative research report on minimum wage and pension payment compliance in Nigeria, conducted in collaboration with ActionAid Nigeria.

Ajaero argued that negotiations should begin immediately rather than wait until August, as suggested by the Trade Union Congress (TUC), stressing that current economic realities and the three-year wage review cycle made early discussions necessary.

He explained that the National Minimum Wage Act of 2024 increased the minimum wage from ₦30,000 to ₦70,000 and reduced the review period from five years to three years.

According to him, the implementation date of the existing law remained unchanged, making it necessary to begin negotiations ahead of the next review deadline to avoid delays similar to those experienced during previous wage negotiations.

“The time to start negotiation, which in most cases lasts about six months, is now,” Ajaero said, insisting that workers could not afford another prolonged negotiation process.

He clarified that the differing positions of the NLC and TUC on the timing of negotiations did not indicate a division within the labour movement but reflected different approaches to achieving improved conditions for workers.

The NLC president, however, warned that increasing the minimum wage alone would not significantly improve workers’ welfare unless the government also addressed inflation and the depreciation of the naira.

He said that even a substantial increase to ₦500,000 would amount to little if the prices of essential goods and services continued to rise unchecked.

According to Ajaero, restoring workers’ purchasing power through economic stabilisation and currency appreciation could be more meaningful than continually increasing nominal wages.

He also called for an interim financial relief package to support workers while preparations for the next minimum wage negotiations continued. He recalled that a ₦35,000 wage award had previously helped workers cope with the transition to the current minimum wage.

Ajaero urged the government to include minimum pension payments in the forthcoming minimum wage negotiations, arguing that retirees were among those worst affected by Nigeria’s economic difficulties.

He said some pensioners received as little as ₦20,000 or ₦30,000 monthly, leaving them unable to meet basic needs such as accommodation, transportation and food.

The labour leader maintained that minimum pension provisions should be considered alongside minimum wage adjustments to ensure that retired workers were not left behind.

He called for measures to guarantee that pensioners under both the defined-benefit and contributory pension schemes received adequate retirement benefits. He further urged the government to use increased revenue from crude oil exports to provide relief for Nigerians struggling with the rising cost of living.

He noted that higher petroleum prices had significantly increased transportation, food and other household expenses, eroding the gains from the current minimum wage.

The NLC president maintained that the minimum wage debate should extend beyond public servants to cover workers in the organised private sector and the informal economy, including artisans, hairdressers and other self-employed Nigerians.

Earlier, in his welcome address, ActionAid Nigeria Country Director, Dr Andrew Mamedu, supported the call for early negotiations, describing the timing of the research as critical to shaping discussions on the next minimum wage.

Mamedu said waiting until the current three-year review period had elapsed before beginning negotiations could undermine efforts to secure better wages for millions of Nigerians.

He argued that while some macroeconomic indicators might suggest improvement, the everyday experiences of Nigerians continued to reflect significant economic hardship.

According to him, minimum wage compliance affected not only unionised workers but also employees in the private sector and millions of other Nigerians covered by the relevant wage laws.

Mamedu said ActionAid Nigeria was committed to helping lift five million people out of poverty and believed that the payment of decent wages could contribute significantly to achieving that objective.

He explained that the organisation partnered with the NLC to investigate the implementation of minimum wage provisions across the country after concerns emerged over persistent non-compliance with previous wage increases.

Presenting the research findings, Dr Terfa Abraham said that despite increased allocations from the Federation Account Allocation Committee (FAAC) to states, full compliance with minimum wage requirements remained a challenge across state and local governments, as well as some federal agencies.

He attributed the varying levels of compliance, particularly at the state and local government levels, to weak political commitment and the failure of some governments to prioritise wage obligations in their public spending.

Abraham also identified inflationary pressures and the harsh effects of economic reforms as factors contributing to the problem, noting that increased revenue allocations had not necessarily translated into adequate spending on workers’ wages.

The findings highlighted the gap between government revenue and the fulfilment of statutory wage obligations, raising concerns about the welfare of workers and pensioners amid persistent economic pressures.

The report underscored the need for stronger political will, improved monitoring of compliance and more deliberate prioritisation of wage and pension payments by the relevant tiers of government.

The NLC and ActionAid Nigeria maintained that the findings should inform the next minimum wage negotiations and drive stronger accountability in the payment of wages and pensions across the country.