Labour to engage FG on minimum wage review

The Nigeria Labour Congress alongside the Trade Union Congress announced their intention to resume discussions with the Federal Government regarding a revised national minimum wage, expressing concerns that employees are struggling more with increasing living expenses as inflation undermines actual earnings.

The labor unions advocate for a "genuine living wage" to supplant the existing system, which they argue fails to mirror Nigeria’s current economic circumstances, especially the significant hikes in food, transportation, housing, and healthcare costs.

This stance was articulated in a collective statement made during the 114th International Labour Conference held in Geneva on Monday, where the unions also dismissed any suggestions to impose taxes on minimum wage or additional financial responsibilities on low-income workers.

The existing minimum wage in Nigeria, set at N70,000, was enacted into law on July 18, 2024, through an agreement between organized labor and the federal administration. President Bola Tinubu officially revealed this wage on July 19, 2024, with its implementation commencing on July 29, 2024.

The initial agreement established a review cycle of three years, a change from the earlier five-year schedule. Nonetheless, in January 2025, the Federal Government modified this framework, declaring that the minimum wage would be evaluated biannually, marking 2026 as the next assessment year.

In this context, labor leaders expressed their plans to initiate formal discussions with the federal government prior to the renegotiation deadline for the wage in July 2026 to eliminate the delays that have typically plagued past reviews of the minimum wage.

"The current legislation is set to lapse early next year, and we have declared that renegotiation will begin by July 2026 to prevent the painful delays of former occasions. As soon as we depart from here, we will formally write to the government urging the initiation of the process for the adjustment of the national minimum wage," stated the unions.

The labor representatives noted that workers face significant strain due to inflation, currency devaluation, and rising costs of essential services, asserting that official economic metrics do not adequately depict the everyday realities faced by many households.

They cautioned that implementing taxes on the minimum wage would exacerbate poverty and intensify economic distress at a time when numerous citizens are struggling to fulfill basic necessities.

"We insist on nothing less than a true living wage that reflects the harsh economic conditions of today. We also request immediate relief measures from the government at every level until a new minimum wage is established. We categorically reject any attempts to tax the minimum wage or impose additional burdens on those in poverty," the unions articulated in their statement.

The unions emphasized that the forthcoming negotiations should extend beyond mere nominal increases to concentrate on safeguarding real incomes, which have been gradually diminished by inflation.

They also called on both federal and state administrations to implement short-term relief strategies while negotiations are ongoing, warning that any delays could exacerbate industrial unrest throughout the nation.

In addition to wage matters, the labor movement utilized the Geneva meeting to address more extensive economic and social issues, including insecurity, unemployment, and escalating poverty rates.
They indicated that the threat of insecurity in various regions of the nation has made travel increasingly perilous for employees, with incidents of murder, kidnapping, and the uprooting of individuals impacting both productivity and their means of living.

The unions reported that around 2,000 individuals lost their lives during the first three months of the year, while millions were forced from their homes, resulting in the disturbance of entire neighborhoods and economic activities due to violence.

They cautioned that an escalation in insecurity might compel workers to stay home as a means of survival, leading to increased tensions that could go beyond typical labor protests if not addressed promptly.

The labor leaders pointed out that roughly 65 percent of Nigerians, which translates to about 150 million individuals, are currently experiencing multidimensional poverty, driven by rising prices, job losses, and a decline in purchasing power.

They contended that although macroeconomic adjustments aim for stabilization, these have not yet led to any enhancement in the living conditions of the average citizen.

With the 2027 general elections on the horizon, the unions announced their plan to formulate a set of demands that will guide their interactions with political figures and influence their endorsements of candidates, stating that only those who pledge to advance security, provide effective public services, implement wage reforms, and safeguard labor rights would gain their support.

The labor movement expressed alarm over purported intrusions into union matters in certain states, accusing specific government bodies of undermining the democratic leadership structures within labor.

They stressed their commitment to opposing any efforts to diminish the autonomy of unions or to impose external control over labor organizations.

As the current wage framework approaches its 2026 assessment period, the unions stated that their focus remains on securing a wage system that accurately mirrors economic conditions and shields workers from further declines in their earnings.

They asserted that the results of the forthcoming negotiations will determine whether workers in Nigeria receive what they refer to as a “living wage” or continue to suffer from increasing economic difficulties.