The Organised Labour in Nigeria has proposed an annual review of the N70,000 minimum wage to align with inflation, ensuring it reflects the changing economic realities faced by workers.
The President of the Trade Union Congress (TUC), Festus Osifo, made this known during an interview on Channels Television’s Politics Today. Osifo emphasized the importance of tying wage adjustments to inflation, advocating for a system that eliminates the long gaps between wage reviews.
Labour’s Push for Inflation-Linked Wage Adjustments
“What we are pushing for as Labour is that instead of waiting five years to adjust the minimum wage based on cumulative inflation, why not reflect inflation on an annual basis?” Osifo questioned.
He explained that both the TUC and the Nigeria Labour Congress (NLC) have initiated discussions to institutionalize this change. For instance, he suggested using inflation data released by the National Bureau of Statistics (NBS) each January to determine annual adjustments.
“For example, if the inflation figure for December 2024 is 35%, we propose applying that percentage to the N70,000 minimum wage, making it reflective of the true economic value. The same process would apply in subsequent years,” Osifo elaborated.
Moving Beyond the Current Review System
Currently, the law stipulates wage reviews every three years, reduced from the previous five-year cycle. However, Labour argues that this periodic system fails to address the immediate impact of inflation on workers’ purchasing power.
“This systemic adjustment would ensure that the minimum wage keeps pace with inflation without waiting for statutory review cycles. It is a conversation we began in 2024 and will actively pursue in 2025,” Osifo added.
Background to the N70,000 Minimum Wage
In July 2024, after prolonged negotiations, the Federal Government and labour unions agreed on a minimum wage of N70,000, approved by President Bola Tinubu. This marked the first increase in five years, replacing the previous N30,000 benchmark.
Challenges Facing Workers
Despite the increase, labour unions argue that N70,000 is insufficient to meet the rising cost of living, driven by factors such as the removal of petrol subsidies and soaring energy costs. According to Labour, the current wage falls short of providing workers with a decent standard of living, underscoring the need for continuous adjustments.
The Bottom Line
Labour’s call for annual inflation-based wage adjustments represents a proactive approach to safeguarding workers’ earnings in Nigeria’s volatile economic environment. If implemented, this system could help workers maintain their purchasing power and adapt more effectively to rising costs.
