Labour Proposes N500,000 Minimum Wage Amidst Soaring Inflation

As Nigeria grapples with the harsh realities of soaring inflation and escalating costs of living, the Nigeria Labour Congress (NLC) has proposed a bold new minimum wage of N500,000 for Nigerian workers.

This comes as a response to the current economic challenges faced by the nation’s workforce.

Zonal public hearings on the new wage structure are set to commence today across six geopolitical zones, including Lagos, Kano, Enugu, Akwa Ibom, Adamawa, and Abuja.

The hearings will gather insights and input from a diverse group of stakeholders, including state governors, ministers, civil society groups, and the private sector.

The goal is to arrive at a consensus on a new minimum wage that aligns with economic realities and fulfills workers’ aspirations.

In a recent interview on Arise TV, Joe Ajaero, the President of the NLC, hinted at the possibility of pushing for a minimum wage as high as N1 million, should the current inflationary trends persist.

This statement underscores the dire economic straits many Nigerian workers find themselves in and the urgent need for wage adjustments reflective of the realities on the ground.

A top official of the NLC, speaking to Punch under the condition of anonymity, revealed that the figure being considered at today’s meeting, based on proposals from state chapters, stands at N500,000.

This proposition aims to address the significant decline in purchasing power and the hardships faced by workers due to the current economic conditions.

The public hearings are chaired by prominent figures, with Joe Ajaero presiding over the session in Yola, Adamawa State, representing the North-East zone, and the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, leading the South-West hearing in Lagos.

This initiative follows the inauguration of a 37-member panel by President Bola Tinubu’s deputy, Kashim Shettima, on January 30, 2024.

The panel, comprising representatives from the federal and state governments, the private sector, and Labour, is tasked with recommending a new national minimum wage by April 1, following the expiration of the current N30,000 minimum wage.

Ajaero said, “This N1m may be relevant if the value of the naira continues to depreciate; if the inflation continues unchecked because the demand of Labour is equally dependent on what is happening in the society.”

However, in an interview with Punch on Wednesday, a top official of the NLC said organized Labour would insist on any amount slightly above N500,000 as minimum wage based on the analysis of proposals from state chapters.

The official, who spoke in confidence because he was not authorized to speak to the media on the negotiation, explained that the cost-of-living analysis carried out in states was N900,000.

The official added, “The NLC has done some scientific research on these parameters and the N30,000 that was paid.

If you divide N30,000 in the last five years considering what that amount can purchase now, and how much a worker is to earn to buy the same thing, that’s nearly about N300,000 for that same amount.”

The NLC’s demand will depend on the proposals submitted to its headquarters from state and local government chapters.

The official confirmed that Ajaero would preside over the hearing in Yola, the capital of Adamawa state.

The public hearings are a critical step in determining a new national minimum wage that reflects the economic realities and aspirations of Nigerian workers.