Labour Unions in Nigeria Propose New Minimum Wage of N615,000

Organized labour in Nigeria, including the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), has submitted a proposal for a new minimum wage set at N615,000 per month. This significant demand comes as part of ongoing negotiations for a new national minimum wage.

A source from organized labour, speaking anonymously, revealed that the proposed wage was reached after extensive consultations. Although this figure may increase due to the recent hike in electricity tariffs, it represents the current position of labor unions.

The government, led by Vice President Kashim Shettima, had previously established a 37-member panel to recommend a new minimum wage. The panel includes representatives from federal and state governments, the private sector, and organized labor, and is chaired by former Head of Civil Service of the Federation, Bukar Aji. The current N30,000 minimum wage expired at the end of March 2024.

NLC President Joe Ajaero initially called for a minimum wage of N1 million due to rising inflation, but the current demand stands at N615,000. Critics argue that the figure may be unsustainable, especially considering the economic challenges facing many Nigerian states.

Economists differ on the feasibility of the proposed minimum wage, emphasizing the need for negotiations and adjustments based on varying economic conditions across states. While the Federal Government might handle the wage increase, state governments and the private sector may struggle to keep up.

As discussions continue, organized labor plans to use the recent increase in electricity tariffs to press for further wage adjustments. The situation underscores the ongoing challenges in balancing economic realities with workers’ needs for fair compensation.