Nigerian workers have once again demanded a wage increase of at least 50 percent from President Bola Ahmed Tinubu’s administration to alleviate the effects of the country’s rampant inflation. This demand was reiterated in an exclusive interview with Media Talk Africa on Monday by a senior executive of the Nigeria Labour Congress (NLC), who requested to remain anonymous. The call for a wage rise comes just six months after the minimum wage was increased in July 2024.
The workers are urging the presidential economic team to intensify efforts to address the policies that have caused significant hardship for Nigerians in recent months. The NLC representative stated, “We have called on President Bola Ahmed Tinubu for a wage review. There is a difference between wage review and minimum wage negotiation.” The NLC had previously met with the Secretary to the Government of the Federation, during which several ministers acknowledged the need for a wage review due to the ongoing inflation. The NLC plans to formally request this wage review from the government.
The leadership of the NLC will convene to determine the specific amount for the proposed wage review, as prices have surged since the last minimum wage adjustment. The NLC source emphasized that the President and his media team should reconsider their stringent economic policies. Meanwhile, attempts to reach NLC spokesperson Benjamin Upah and Secretary Emmanuel Ugboaja for comments went unanswered at the time of this report.
The primary motivation behind the demand for a wage increase is the rising cost of living in Nigeria. It is important to note that during the discussions leading to the N70,000 minimum wage increase, President Tinubu had indicated he would support a N250,000 wage rise if fuel prices were raised. Joe Ajaero, the President of the NLC, confirmed that this position influenced the union’s acceptance of the N70,000 minimum wage.
Despite the minimum wage increase approved by Tinubu in July, the escalating prices of fuel and other economic challenges have diminished the effectiveness of the N70,000 wage. For instance, the average price of fuel, which was N770.54 per litre in July 2024, surged to between N935 and N1,100 by January 13, 2025. This represents an increase of N339, or 30 percent, highlighting the significant impact on the cost of goods and services.
According to the National Bureau of Statistics, headline inflation reached 34.60 percent, while food inflation soared to 39.93 percent in November. Consequently, the eroding value of the N70,000 minimum wage has prompted Nigerian workers to call for a wage increase.
Additionally, the NLC member addressed the ongoing controversy surrounding four tax reform bills currently before the National Assembly. They urged President Tinubu to raise the threshold for workers eligible for zero taxation from N800,000 to N1.5 million per annum. This aligns with Ajaero’s recent comments, which indicated that the current structure of the tax bills would result in higher tax burdens for most workers, despite the minimum wage being set at N70,000.
Media Talk Africa reports that President Tinubu, in his first media chat, stated that the four tax bills—namely the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—are essential for retooling the economy. However, these bills have faced opposition from various groups, including Northern governors and members of the National Economic Council.
The NLC source criticized the government for failing to alleviate the financial burdens on Nigerians during a time of rising living costs, suggesting that instead of providing relief, the government is adding to the burden through taxation. They pointed out the inconsistency in excluding only those earning between N0 and N800,000 from taxation, noting that the minimum wage of N70,000 translates to an annual income of N840,000, which would subject workers to higher taxes.
The source argued that if the government genuinely intends to exempt lower-income earners from taxation, the threshold should be adjusted to N1.5 million, reflecting the impact of inflation on the value of the Naira. They questioned the rationale behind taxing individuals who are already struggling to afford basic necessities, such as a bag of rice. The government should focus on reducing the financial strain on Nigerians rather than exacerbating it through increased taxation. Ajaero has echoed the call for the government to address the concerns raised by the tax bills.
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