In a recent announcement, the Nigerian federal government declared its intention to implement a new minimum wage for workers in 2024. The Minister of Information and National Orientation, Mohammed Idris, revealed this plan during a year-end press conference in Abuja.
Idris emphasized that the government aims to collaborate with organized labor on the proposed new minimum wage, but did not disclose the exact figure. “The Federal Government is also working on a new minimum wage for workers, which will come into effect next year,” he stated.
However, the Nigeria Labour Congress (NLC) denied engaging in discussions with the government regarding the new minimum wage. Mr. Benson Upah, the NLC spokesperson, confirmed the government’s interest in collaboration but clarified that formal negotiations had not commenced.
According to Upah, the minimum wage undergoes a four-year review cycle, involving consultations with relevant stakeholders, including labor, government, and employers. He added, “The government has signified interest in working with us, but that work is yet to start, certainly not later than early next year.”
When asked about the union’s approach to negotiating a new minimum wage, Upah highlighted the influence of various economic factors such as inflation rate, exchange rate, and cost of living on their demands and potential outcomes.
It is pertinent to note that Nigeria had set the minimum wage at 30,000 since April 18, 2019. Subsequently, following the removal of fuel subsidy in June, the government announced an additional N35,000 wage award for six months.
The announcement of a new minimum wage comes at a time when Nigeria’s inflation has surged to 28.80% in November, reflecting the challenging economic landscape.
