The spokesperson for the Nigeria Labour Congress, Benson Upah, has described the proposed N100,000 national minimum wage being considered by state governors as unrealistic, arguing that Nigerian workers should earn as much as N1 million monthly, given prevailing economic conditions.

Upah stated this in an interview with The PUNCH on Sunday while reacting to comments by the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, who disclosed that governors were considering a new national minimum wage of N100,000.

AbdulRazaq, in a Facebook post on Saturday, said the proposal was informed by rising inflation, increasing living costs and the growing financial burden on Nigerian workers.

According to the governor, state governments were already engaging the Federal Government and organised labour to arrive at a wage structure that balances workers’ welfare with fiscal sustainability.

Reacting to the proposal, Upah said although the governors’ consideration of a wage review was commendable, N100,000 was significantly below what workers require to cope with current economic realities.

“We consider it thoughtful of the Kwara State governor to propose this, but certainly, N100,000 falls far below the realistic figure,” he said.

The labour leader cited the continued depreciation of the naira, rising inflation, increases in electricity tariffs, higher fuel prices, declining purchasing power and the impact of new tax measures as factors making a substantially higher wage necessary.

“Given the realities around the exchange rate, inflation, raised tariffs, the surge in the pump price of petrol and associated costs, the decline in the purchasing power of the average worker, and the effects of the new tax regime on our cost of living, the realistic figure, subject to status quo maintenance, would be N1 million,” he stated.

Upah argued that government revenues have improved significantly and should support enhanced remuneration for workers.

“In light of the earnings by governments, this should not be a big issue. Check what is being shared at FAAC. The windfall from the Middle East war has put over N5tn in the treasury. Even though this is temporary, it is nonetheless very good for governments,” he added.

The NLC spokesman further stressed that the workforce remains the most valuable asset of any nation and should be adequately compensated to ensure productivity and economic growth.

“Finally, please note that the greatest asset of any nation is its workforce,” he said.

The debate over workers’ wages has intensified amid worsening economic conditions following the removal of fuel subsidies and the floating of the naira by the Federal Government.

In July 2024, the Federal Government approved a new national minimum wage of N70,000 after prolonged negotiations with organised labour. However, labour unions have continued to argue that inflation and rising living costs have significantly eroded the value of the wage.

Recent increases in electricity tariffs, transportation costs and food prices have further fuelled demands for another wage review, with labour leaders insisting that workers’ salaries should reflect prevailing economic realities.

The Nigeria Governors’ Forum has yet to formally present any proposal on a new minimum wage framework to the Federal Government or organised labour. (Sunday PUNCH)

Update news