Organized labour in Nigeria advocates for annual adjustments to the ₦70,000 minimum wage to align with inflationary trends. Labour leaders argue that revising wages every three to five years no longer addresses the economic challenges faced by Nigerian workers.
Festus Osifo, President of the Trade Union Congress (TUC), emphasizes this during an interview on January 1, 2025, highlighting the need for a more responsive wage system. “Labour is pushing for the government to reflect inflation annually instead of waiting years for adjustments,” he states.
Osifo proposes that wage adjustments mirror yearly inflation figures as released by the National Bureau of Statistics (NBS). Using December 2024’s inflation data as an example, he suggests applying the inflation rate directly to the ₦70,000 minimum wage to preserve its value.
He acknowledges that while the ₦70,000 wage is an improvement over ₦30,000, it remains insufficient in light of the rising cost of living, worsened by the removal of petrol subsidies and increased energy expenses.
“If inflation is 35%, that percentage should be applied to the ₦70,000 minimum wage to maintain its purchasing power. This can be done annually, rather than waiting for the three-year review now required under the new act,” Osifo explains.
He assures that both the TUC and the Nigeria Labour Congress (NLC) are unified in their advocacy for inflation-adjusted wages, with plans to intensify these discussions in 2025.
In July 2024, the Federal Government and labour unions agreed on the ₦70,000 minimum wage after prolonged negotiations. This agreement, approved by President Bola Tinubu, marked a shift from the previous ₦30,000 benchmark.
President Tinubu, in his New Year message, pledges his administration’s commitment to reducing inflation from its current 34.6% to 15% by the end of 2025.
“Our government focuses on lowering costs by boosting food production and promoting local manufacturing of essential goods,” Tinubu affirms.
Organized labour remains firm in its pursuit of a wage policy that reflects real-time economic realities, ensuring Nigerian workers can better cope with inflation’s impact on living costs.
