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Despite the enforcement of the national minimum wage across all 36 states and the Federal Capital Territory (FCT), concerns regarding the cost of living have been raised by stakeholders and labor unions, who argue that many workers struggle to provide for their families.
States have set the average minimum wage at N73,471.43 based on data analysed , which indicates that the mean of state minimum wages stands at N3,471.43, or five percent higher than the legislated wage threshold.
Some states, including Akwa Ibom, Bayelsa, Delta, Enugu, Lagos, Niger, Oyo, and Rivers, provide salaries significantly above both the federal minimum wage (N70,000) and the national average.
However, less than a year since the newly negotiated wage law was enacted, its real value has diminished substantially, prompting renewed calls for action from stakeholders.
With inflation already consuming a significant portion of the wage increase, agitation appears to be intensifying ahead of the upcoming renegotiation period in 2027. Labor leaders are preparing their agenda for the discussions, claiming that the government has only partially addressed their needs when it adjusted wages last year.
With a headline inflation rate nearing 24 percent, nominal incomes have decreased by over a quarter of their value. This effectively means that the average real minimum wage among state governments is now N55,000, compared to its intended implementation a year ago.
Consequently, workers across various salary scales have effectively seen 25 percent of their earnings completely diminish due to reduced purchasing power.
However, while the minimum wage has been enacted, reports has it that the government at various levels has failed to honor consequential adjustments that would align the overall wage level with inflationary pressures.
As of last week, the consequential adjustments were still under discussion among all state governments.
With states' wages ranging between N70,000 and N85,000, increasing expenses for telecommunications, transportation, food, electricity, education fees, housing, and fuel are leaving many workers in a precarious position, stakeholders noted yesterday.
Currently, the average daily expense for a healthy diet in Nigeria stands at N1,255 per adult, as reported by the National Bureau of Statistics (NBS) in August 2024. This implies that a worker earning N70,000 monthly would spend N37,650 on daily meals, constituting 53.79 percent of their entire salary.
All state governments are in discussions with labor councils regarding minimum wage implementation methods, though Enugu state has yet to initiate negotiations, according to labor organizations. Nevertheless, the state has started provisional payments of N80,000 as minimum wage to its employees.
As of July 29, 2024, following President Bola Tinubu's signing of the 2024 national minimum wage bill into law, the inflation rate was recorded at 33.4 percent, a decrease from 34.19 percent in June 2024. Although inflation eased to 24.48 percent in January 2025 and further decreased to 23.18 percent in February 2025, prices for essential food and household items remain persistently high.
According to the implementation report, Abia, Adamawa, Anambra, and Bauchi states are complying with the N70,000 wage as agreed with their respective labor councils, with implementation already underway.
Akwa Ibom and Bayelsa states are disbursing N80,000 as per their negotiations, effective from November 1, 2024, about five months subsequent to the law's enactment.
It should be noted that the National Minimum Wage Act does not encompass part-time workers, commission-based employees, those in establishments with fewer than 25 employees, seasonal workers in agriculture, or individuals working on vessels or aircraft.
While a significant accomplishment of the 2024 national minimum wage is the reduction of the negotiation cycle, enabling both the Nigeria Labour Congress and Trade Union Congress (TUC) to prepare for another negotiation round in 2026, there are worries that inflation has eroded the prospective benefits of the current minimum wage.
General Secretary of the Non-Academic Staff Union and Associated Institutions (NASU), Peters Adeyemi, praised the shortening of the negotiation cycle but stressed that negotiations must reflect current realities.
He argued, “The five-year cycle was too lengthy in a fluctuating economy. Prices of goods and services escalate almost daily, making workers' take-home pay insufficient. Devaluation, fuel prices, and inflation are formidable challenges for Nigeria's working class as they consume a significant portion of earnings. A one-year renegotiation period should hopefully yield a more manageable figure.”
Despite the raise to N70,000, NLC President Joe Ajaero noted that the weakened naira, higher electricity tariffs, and complete deregulation of the oil sector impose multiple economic burdens, rendering the new wage insufficient.
He accused the government of going back on its pledge not to raise the fuel price, which was a prerequisite for agreeing to the N70,000 figure, a stark contrast to the N250,000 initially demanded by organized labor during negotiations.
Nevertheless, he remains hopeful that the decision for a three-year negotiation cycle, set for 2027, provides an opportunity to advocate for wages that more accurately reflect economic realities.
National Coordinator of the Human Rights Writers Association of Nigeria (HURIWA), Emmanuel Onwubiko, stated that no state governor deserves praise for implementing the new wage.
He contends that a wage that falls below $50 monthly is among the lowest globally.
“The minimum wage is excessively low at N70,000. The actual number of workers in these states is unknown, so it's difficult to gauge their financial capabilities based on reported figures. The argument that compliance is satisfactory is untenable.”
Onwubiko emphasized that, given the naira's loss of over 100 percent of its value in the previous year, N70,000 is insufficient to sustain a family of three for a month, arguing that “Living costs have surged by at least fivefold within the past year. What N30,000 used to buy a year ago, N70,000 today cannot cover.”
He urged tripartite entities to prepare for another round of negotiations well ahead of the 2027 timeline.
Regarding how state governments might bolster resources for their communities, Onwubiko advised against entering business ventures.
He pointed out that while Akwa Ibom's success in aviation is exceptional, it's not a model that can be replicated by all states. He advised the Enugu state government to concentrate on its current infrastructure projects, cautioning Kogi state about its plans to engage in mining activities.
He remarked, “How many state governments succeed in aviation? We should reflect on the events in Cross Rivers. Enugu should focus on its infrastructure initiatives, and Kogi should foster a conducive environment for private sector growth. The government must ensure adequate security and infrastructure to support a thriving private sector.
Investment banker Tolulope Alayande commended labor for their role in reducing the negotiation cycle from five to three years.
He argued that this step enables the labor movement to align future minimum wages with inflation trends.
He concluded, “It may be accurate that N70,000 falls significantly short, yet it is a positive step considering the federal government's available resources. The abolition of the fuel subsidy was unavoidable and was the sole viable option at the time.
The economy was poorly managed under the prior administration, leading to excessive borrowing and an unsustainable subsidy regime. We are now confronting the consequences of narratives that misled Nigerians into believing they could live beyond their means. This is our current reality, and we must face it head-on.”
