NLC Rejects N100,000 Minimum Wage, Demands N1m Monthly

LABOUR UNION

NLC Rejects N100,000 Minimum Wage, Demands N1m Monthly

ABUJA – The Nigeria Labour Congress (NLC) has dismissed suggestions that a new national minimum wage of N100,000 would adequately address workers’ challenges, insisting that employees require significantly higher earnings to cope with prevailing economic realities.

Speaking on Sunday, the spokesperson for the NLC, Benson Upah, said a monthly wage of N1 million would be more reflective of current economic conditions, citing soaring inflation, rising living costs, and the declining purchasing power of wages. His comments followed remarks by the Chairman of the Nigeria Governors’ Forum (NGF) and Governor of Kwara State, AbdulRahman AbdulRazaq, who disclosed that governors were considering a review of the national minimum wage to N100,000.

AbdulRazaq made the proposal on Friday during a meeting between President Bola Tinubu and state governors held at the President’s residence in Lagos. The Kwara governor, who also serves as NGF Chairman, praised what he described as Tinubu’s “courage” in removing fuel subsidy, saying only a small fraction of political leaders could take such a decisive step. According to the governor, most states were now able to meet salary obligations without resorting to borrowing or bond issuance. “In my own state, when we get the FAAC allocation, after paying salaries, we’re left with N100 or N200 million,” he said. He further disclosed that many states were already paying above the national benchmark, with several implementing a minimum wage of about N100,000. “On the issue of minimum wage, most of the states are paying almost 100,000 naira today and I urge your excellency, let’s all have a discussion on moving the minimum wage to 100,000,” AbdulRazaq told the President.

The governor also stated in a Facebook post on Saturday that the proposal was driven by soaring inflation, the increasing cost of living, and the growing financial pressure on workers across the country. According to him, discussions were ongoing among state governments, the Federal Government, and organised labour to develop a wage structure that would improve workers’ welfare without undermining fiscal stability. “State governments recognise the urgent need to improve workers’ welfare in response to the current economic realities facing Nigerians,” AbdulRazaq said. “We are actively engaging with the Federal Government and organised labour to arrive at a wage structure that is fair to workers and sustainable for government finances.”

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Responding to the proposal, Upah acknowledged the governors’ move to review workers’ pay as “thoughtful” but maintained that the figure being considered was insufficient. “We consider it thoughtful of the Kwara State governor to propose this, but certainly, N100,000 falls far below the realistic figure,” he said. He attributed the need for a much higher wage to several economic factors, including the depreciation of the naira, persistent inflation, increased electricity tariffs, rising fuel costs, shrinking purchasing power, and the impact of recent tax measures. “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.

The labour leader also argued that government revenues had improved considerably and could support enhanced worker remuneration. He pointed to increased allocations from the Federation Account Allocation Committee (FAAC) as justification for higher wages. “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. Upah further stressed the importance of investing in the workforce, describing workers as the backbone of national development. “Finally, please note that the greatest asset of any nation is its workforce,” he said.

Upah’s reference to the Middle East windfall is supported by recent FAAC data. Nigeria is currently benefiting from the ongoing Middle East energy disruption triggered by the United States-Israel war against the Islamic Republic of Iran. A report released by the Federation Account Allocation Committee revealed that March 2026 revenue surpassed the previous month (February) by N142 billion. FAAC approved N2.036 trillion gross revenue for March 2026, which was higher than February’s N1.894 trillion. As an oil-producing nation, Nigeria is benefiting from the ongoing crisis primarily through a significant windfall in oil revenue, which boosts the funds available for distribution by FAAC. The conflict has pushed global oil prices to surge well above Nigeria’s 2026 budget benchmark of $64.85 p er ba rre l, res u lt in g inhi g h ere x p or t e a r nin g s . T h ecr i s i s, w hi c h s t a r t e d in F e b r u a ry 2026, p u s h e d g l o ba l o i lp r i ces ab o v e * *$ 90–$100 per barrel**. The price surge increases the value of every barrel of crude oil exported, directly translating into increased foreign exchange inflows and boosting Nigeria’s external reserves. The total distributable revenue for March 2026 comprised distributable statutory revenue of N1.320 trillion, distributable Value Added Tax (VAT) revenue of N515.391 billion, and augmentation of N200 billion.

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While the NLC has proposed N1 million as a realistic wage figure, the union’s leadership has also acknowledged that a high salary is meaningless without a stable naira. In an earlier statement in April 2026, NLC President Joe Ajaero noted that organised labour was more concerned about the value of the naira than nominal wage increases, stressing that rising inflation had continued to erode workers’ purchasing power. “Even if Nigerian workers earn N1 million, it will not be meaningful if the naira has no value. What we are looking for is a currency that can sustain workers and their families at least to the end of the month,” Ajaero had said in an interview with the News Agency of Nigeria. Ajaero also clarified that the ongoing conversation around a new national minimum wage must follow laid-down procedures, adding that it is governed by law and tied to a specific review cycle. “The minimum wage has not been negotiated yet. It is a process that must follow the law. When it is time, we will commence negotiation ahead of its expiration. It cannot be rushed because of election timelines,” he said. He said the NLC would initiate the process within the stipulated window before the expiration of the current wage structure. Ajaero also called for urgent government intervention to cushion the impact of inflation, noting that the current economic situation had not improved for workers. He said the surge in fuel prices had worsened the hardship, with attendant effects on transportation, food prices, and general cost of living.

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, replacing the previous N30,000 minimum wage approved in 2019 by former President Muhammadu Buhari. The law also provides for periodic reviews every three years. However, labour unions have consistently argued that inflation and rising living costs have significantly eroded the value of the wage. Recent increases in electricity tariffs, transportation fares, and food prices have further strengthened calls for a fresh wage review, with labour leaders insisting that salaries should reflect prevailing economic realities.

The NLC and the Trade Union Congress of Nigeria (TUC) had earlier announced in their May Day address that negotiations for a fresh national minimum wage would commence by July 2026, ahead of the expiration of the current agreement next year. The Nigeria Governors’ Forum is yet to formally submit any proposal on a new minimum wage framework to either the Federal Government or organised labour. The emergence of an N100,000 benchmark marks the clearest indication yet that government officials are considering an upward adjustment in workers’ pay, but the wide gap between the governors’ proposal and labour’s demand suggests potentially protracted negotiations ahead. As of the time of reporting, the Federal Government had not issued an official response to either the governors’ proposal or the NLC’s counter-demand of N1 million.