NLC Warns Inflation Has Destroyed Value of Workers’ Earnings

Nigerian Labour Congress (NLC) President, Comrade Joe Ajaero

NLC Warns Inflation Has Destroyed Value of Workers’ Earnings

The Nigeria Labour Congress (NLC) has warned that a monthly salary of ₦1 million offers little real value to Nigerian workers without a stable naira and broader economic reforms to curb inflation and rising living costs.

NLC President Joe Ajaero made the remark in an interview with the News Agency of Nigeria (NAN) in Abuja, stressing that the real issue for organised labour is not nominal wage increases but the purchasing power of income. He explained that persistent inflation and currency instability have significantly reduced the ability of workers to afford basic necessities such as food, transportation, housing, and healthcare. “Even if Nigerian workers earn ₦1 million, it will not be meaningful if the naira has no value,” Ajaero said, adding that what workers need is a currency strong enough to sustain them through the month.

Ajaero also clarified that discussions around a new national minimum wage cannot be rushed or influenced by political timelines, insisting that the process is governed by law and follows a fixed review cycle. According to him, negotiations have not yet officially begun, and the NLC will only engage when the current wage structure is due for renewal. He rejected suggestions that wage talks should be tied to election periods, stressing that the integrity of the process must be protected.

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The NLC president raised concerns over the worsening economic situation, noting that inflation and fuel price increases have intensified hardship for Nigerian workers. He said the removal of fuel subsidies and global economic shocks have significantly raised transportation and food costs, further reducing real incomes. “We raised concerns when global developments began to impact fuel prices locally, and the burden on workers continues to increase,” he said. Ajaero called for urgent government action to stabilise the economy and reduce the impact of external shocks, urging the development of a more resilient energy and economic policy that shields citizens from external volatility.

On pension administration, Ajaero expressed concern over growing confusion caused by the emergence of multiple pension unions and stakeholder groups. He said the NLC has begun consultations with relevant parties to streamline coordination and ensure clarity in pension operations, including deductions and remittance processes. “There are several pension groups now, and this is creating ambiguity. We are engaging them to find a common ground,” he said.

Ahead of Workers’ Day, Ajaero said any planned protests would not be nationwide but limited to states that have failed to fully implement the approved minimum wage structure. He noted that while most states have complied, some are yet to fully implement adjustments, particularly at local government and education levels. He added that issues such as consequential salary adjustments remain unresolved in some states, where workers are being paid the minimum wage without proper restructuring of salary scales. “These are technical issues that must be addressed. We will evaluate the level of compliance before May Day,” he said.

Reiterating the NLC’s position, Ajaero stressed the need for policies that protect Nigerian workers from global economic volatility, insisting that wages alone cannot resolve structural economic challenges. He also acknowledged recent government actions such as the review of peculiar allowances and the approval of 100% duty tour allowance for civil servants, urging full implementation to ensure workers benefit effectively.