The Nigerian government has indicated that it may conduct an early review of the country’s minimum wage due to rising concerns about inflation and its impact on workers’ purchasing power.
During a briefing in Umuahia after meeting with labour leaders in Abia, the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, reiterated President Bola Tinubu‘s commitment to reviewing the minimum wage every three years. The next review is scheduled to take place in less than two years.
This announcement follows a previous increase in the minimum wage from ₦30,000 in 2019 to ₦70,000 in July 2024. It was agreed that the wage would be reviewed every three years to align it with the country’s economic realities.
Labour Demand Yearly Review
However, given the rising inflation rates, labour leaders are advocating for a more frequent revision of the minimum wage. Festus Osifo, President of the Trade Union Congress (TUC), argued that workers’ salaries should be adjusted annually to reflect inflation.
“Why can’t we adjust the minimum wage based on annual inflation?” Osifo remarked in a recent interview. “For example, if inflation is at 35%, we should increase the ₦70,000 minimum wage by that percentage to ensure it truly reflects current economic conditions.“
Osifo’s proposal aims to prevent inflation from eroding workers’ purchasing power. He recommends that the government apply the annual inflation rate to the minimum wage rather than waiting three or five years between adjustments.
The TUC and the Nigeria Labour Congress (NLC) are collaborating to negotiate improved terms for workers. Labor leaders are pushing for more frequent reviews of the minimum wage, emphasizing the need to protect workers’ welfare and maintain economic stability.
Onyejeocha’s statement implies that the government may be open to an earlier review of the minimum wage. However, whether the government will accept the labour leaders’ proposal for an annual adjustment remains to be seen.
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