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Only 2.2% of Nigerians will benefit from new minimum wage – NBS report

Published

2 years ago

June 13, 2024

Only 2.2% of Nigerians will benefit from new minimum wage – NBS report

About 2.2 per cent of the Nigerian population currently put at 229 million will benefit from a new minimum wage being negotiated, a report by the National Bureau of Statistics has shown.
Specifically, the new NBS report stated that 5.3 million of a total of 76 million workers (33.2 per cent of the total population) would benefit from the wage increase.

A back-of envelope calculation by the National Bureau of Statistics (NBS) shows that 1.2 million (23 per cent) and 0.3 million (six per cent) work with the federal government, drawing salaries from the Consolidated Revenue Fund, and government-owned enterprises respectively.

Also, another 1.3 million (25 per cent) and 0.7 million (13 per cent) work with the state governments, their agencies and local government areas. The remaining 1.8 million (34 per cent) work in formal private organisations.

While experts believe that civil and public servants deserve more in terms of their take home packages, they, nonetheless, observed that for the federal and subnational governments to address the wage crisis in the country, they have to do more in reducing the cost of living and provide enabling environment for businesses to thrive, which will in turn improve the livelihoods of millions of citizens that are wallowing in poverty.

And unlike in advanced societies, whatever civil servants earn in Nigeria will directly or indirectly be shared with the 66.8 per cent remaining population.

In developed societies, there are strong and sustainable safety nets for the people who are not working or have lost their jobs in order for them to have a decent life.

Also, the state takes care of people who have retired as they are seen as assets in society and not as liability to their families.

While there are agencies responsible for similar interventions here in Nigeria and other developing economies, they are far from the ideal.

Experts believe that many civil and public servants in Nigeria borrow or use other legal and dubious means to augment what they get as salary in order to meet up with the demand for the basic necessities of life such as food, shelter, health, education and transportation for their immediate and extended families.

The federal minimum wage, currently at N30,000, was last raised in 2019, when the inflation rate was between 11 and 12 per cent.

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However, the purchasing power of the naira has since been eroded by 276 per cent (compared to what it was in 2019), hence the clamour for an enhanced salary structure.

Nigeria among worse salary payers in Africa

Findings revealed that Nigeria is ranked 44th in Africa in terms of paying the lowest minimum wage, according to Professor Kemi Okuwa of the Nigerian Institute of Social and Economic Research (NISER). Analysis revealed that out of the 76 million workers in the country, only 5.3 million (6.9 per cent) work in the formal sector and are collecting wages.

The findings showed that this is the group that is likely to benefit most from a new minimum wage that has remained contentious and a source of discord between the federal, state and local governments on the one hand and the organised labour on the other hand.

Currently, there is a stalemate in the polity as the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have rejected the N62,000 minimum wage offered by the federal government, even as the Nigeria Governors Forum (NGF) and the Association of Local Governments of Nigeria (ALGON) said they could not afford to pay the figure.

Ironically, the organised labour said anything below N250, 000 would not serve as a living wage which Nigerian workers were aspiring to have.

Many pundits, including some members of the National Assembly, are suggesting that something in the range of N100,000 as minimum wage will uplift the lives of the working class without inducing additional inflation that will hurt the economy further.

Government and private sector workers

In his recent analysis, the Managing Director and Chief Economist of Analysts Data Services and Resources (ADSR), Dr Afolabi Olowookere, said regardless of how the recommendation in the new template for salaries might differ from what labour was currently asking for, both parties would find a common ground and in the final outcome there would be more money for labour.

He, however, said that when the labour finally “wins” the minimum wage battle, another thing that would remain obvious was in dissecting the discrepancy between current low-wage and high-wage workers; wage increase and productivity increase; and then cost of living and standard of living.

Olowookere said, “The implication is that the government will be the major institution that will pay the minimum wage. The private sector is largely informal.

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“The question now is, when they benefit, others will also want to benefit from them, either because they are dependent on them or they are selling things to them.

“The major message is that even when we increase the salary for these few people, we should not lose sight of other people that are dependent on them, and the people that are unemployed; they are many and we don’t have unemployment benefits in Nigeria.

“What also happens to those in the informal sector, even though they are working, they are not earning the minimum wage. The only benefit they can derive is to increase prices of goods and services to the extent that they can squeeze out from those who have benefited.”

Dilemma of workers in states

Dr Olowookere also said that attention should be paid to states, especially given that some of them were not yet paying the N30,000 agreed during the last upward review, which he noted had expired.

He said, “The analysis of the states’ budget performance shows that most of them are using 100 per cent of IGR to pay salaries.

“If there is no Federal Account Allocation Committee (FAAC), they can’t pay salaries. So, if you increase wages, what will be the implication on their performance? How would states with low revenue cope?”

Findings revealed that 15 state governments are yet to implement the old wage of N30,000. They are Abia, Bayelsa, Delta, Enugu, Nasarawa, Adamawa, Gombe, Niger, Borno, Sokoto, Anambra, Imo, Benue, Taraba and Zamfara.

‘Reducing cost of living is the way out’

Speaking on the way forward, Dr Olowookere canvasses a sustainable solution of raising productivity and reducing cost of living for everyone.

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He said when the government continued to increase salaries without corresponding increase in productivity, the cost of living would also keep eroding whatever gain was recorded by the workers and Nigerians in general.

He said, “No doubt, Nigerian workers are due for minimum wage increase. At the current high inflation rate and low productivity level, with everyone being ‘forced’ to provide their own infrastructure, it is a matter of time before all gains are lost.”

FG, states, LGs must not politicise wages – Peterside

In a recent intervention, public policy analyst and former Director General (DG) of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dakuku Peterside, said the implications of creating new salary structures and increasing the minimum wage were complex and multifaceted, requiring the careful consideration of various factors, including economic conditions, industry dynamics and social equity goals.

He said, “Our recent experience has shown that a salary increase may start a merry-go-round of cyclical inflation, which then eats up the value, and then we are back to where we started.

“In an economy with over 40 per cent food inflation, all stakeholders must apply caution and careful measures in implementing a new salary structure.

“However, governments (federal, state and local) cannot afford to play politics with the issue of ‘living wage.’”

Daily Trust

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MURIC Urges Security Agencies to Protect JAMB Candidates, Exam Centres Nationwide

Published

17 hours ago

April 14, 2026

Trends Admin

Executive Director of MURIC, Professor Ishaq Akintola

MURIC Urges Security Agencies to Protect JAMB Candidates, Exam Centres Nationwide

The Muslim Rights Concern (MURIC) has called on security agencies in Nigeria to ensure maximum protection for candidates and officials participating in the forthcoming Joint Admissions and Matriculation Board (JAMB) examinations scheduled to begin on April 16, 2026.

In a press statement issued on Tuesday, April 14, 2026, the Islamic human rights organisation stressed the need for heightened security measures across all examination centres nationwide, citing growing insecurity in several parts of the country.

The statement, signed by the Executive Director of MURIC, Professor Ishaq Akintola, urged the Nigeria Police Force, the Nigerian Army, and the Nigeria Security and Civil Defence Corps (NSCDC) to collaborate effectively in safeguarding candidates and examination personnel throughout the examination period.

According to the group, the appeal became necessary due to rising security concerns in parts of northern Nigeria, where banditry, communal tensions, and violent attacks have continued to threaten public safety.

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MURIC specifically raised concerns about states such as Plateau, Borno, Katsina, Sokoto, and Kwara, warning that some of these areas remain vulnerable to attacks and mass abductions, particularly targeting young students and examination candidates.

The organisation warned that candidates travelling to and from examination centres could be at risk in volatile locations and called for “special attention” to ensure their safety before, during, and after the examinations.

It further urged security agencies to remain vigilant, noting that “eternal vigilance is the price of freedom,” and emphasised the need for proactive intelligence gathering and rapid response mechanisms to prevent any disruption of the exercise.

MURIC also highlighted the importance of securing examination venues themselves, stressing that any attack on candidates or officials would have far-reaching consequences on education and national development.

The group reiterated its commitment to advocating for peaceful coexistence and safety for all citizens, especially young Nigerians pursuing education.

The JAMB examination, conducted annually by the Joint Admissions and Matriculation Board, is a critical gateway for admission into tertiary institutions across the country, with hundreds of thousands of candidates expected to participate nationwide.

Security agencies are yet to issue a formal response to the appeal, but authorities have previously assured Nigerians of adequate protection during national examinations and other major public exercises.

MURIC Urges Security Agencies to Protect JAMB Candidates, Exam Centres Nationwide

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Lafarge Convicted of Terrorism Financing by French Court in Landmark Case

Published

18 hours ago

April 14, 2026

Trends Admin

Lafarge Convicted of Terrorism Financing by French Court in Landmark Case

A French court in Paris has found cement manufacturer Lafarge guilty of financing armed extremist groups during the Syrian civil war, in a landmark ruling that could reshape global standards on corporate responsibility in conflict zones.

The court ruled that the company’s Syrian subsidiary made payments to armed groups, including ISIS and the Nusra Front, between 2013 and 2014, in a bid to keep its cement plant in northern Syria operational during intense fighting.

The judgment also convicted eight former Lafarge employees, including senior executives, for authorising and facilitating the transactions, marking one of the most significant cases of terrorism financing in corporate operations ever handled in France.

According to the court, the payments amounted to approximately $6.5 million, allegedly used to secure safe passage for staff, maintain supply routes, and purchase materials from areas controlled by armed factions.

Presiding judge Isabelle Prévost-Desprez said the arrangement effectively created a “commercial relationship with armed groups,” stressing that economic survival was prioritised over legal and ethical obligations in a war environment.

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The case focused on Lafarge’s Jalabiya cement plant in northern Syria, acquired in 2008 and operating shortly before the outbreak of the Syrian civil war. Investigators told the court that funds were also used to ensure the movement of employees through territories controlled by militant groups.

The ruling has been described by legal experts as a historic precedent in corporate terrorism financing law, as it is among the first instances in France where a multinational company has been convicted for directly funding armed extremist organisations.

The court also examined Lafarge’s operational structure following its 2015 merger into Holcim, which has not yet issued a detailed response to the ruling.

Prosecutors had earlier sought financial penalties and asset confiscation, but the court has yet to announce the final sentence and full penalties in the case.

The verdict follows related proceedings in the United States, where Lafarge previously admitted that its Syrian subsidiary made improper payments to armed groups and agreed to a large financial settlement in a separate investigation.

Analysts say the ruling could have far-reaching consequences for multinational companies operating in high-risk conflict zones, forcing stronger compliance systems, stricter oversight, and tighter controls to prevent indirect funding of armed groups.

The case is widely seen as a turning point in global corporate accountability, highlighting the legal risks companies face when continuing operations in war-torn regions where militant groups exert territorial control.

Lafarge Convicted of Terrorism Financing by French Court in Landmark Case

News

Tinubu Declares End to “Broken Revenue System”, Unveils New Economic Reforms

Published

19 hours ago

April 14, 2026

Trends Admin

President Bola Ahmed Tinubu

Tinubu Declares End to “Broken Revenue System”, Unveils New Economic Reforms

President Bola Ahmed Tinubu has declared that Nigeria has entered a new phase of economic transformation, insisting that the country will no longer operate a “broken, inefficient and unfair revenue system” as his administration intensifies fiscal and tax reforms.

Tinubu made the remarks in Abuja during the commissioning of the Nigerian Revenue Service (NRS) headquarters, where he reaffirmed that ongoing reforms are aimed at strengthening Nigeria’s tax system, improving revenue generation, and restoring public confidence in governance.

He described the reforms as a “covenant with Nigerians,” stressing that they are not political rhetoric but a deliberate effort to rebuild the country’s economic foundations and ensure long-term stability.

According to him, Nigeria is gradually transitioning “from uncertainty to renewed hope” through structural reforms designed to improve efficiency, fairness, and transparency in revenue administration.

The President emphasized that no country can achieve sustainable development with a weak fiscal structure, adding that his administration deliberately embarked on overhauling the system to eliminate leakages, improve compliance, and ensure that national revenue is effectively deployed for development.

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“No nation achieves lasting prosperity on a weak and fragmented revenue system,” Tinubu said, adding that government must earn public trust through a fair and transparent tax structure.

He noted that the reforms are focused on simplifying tax processes, reducing distortions, and creating a more investment-friendly environment that encourages both local and foreign investors.

Tinubu also highlighted early signs of progress, pointing to improvements in fiscal stability, stronger reserves, and increased investor confidence as indicators that the reforms are beginning to yield results.

He attributed these gains to what he called “deliberate policy choices and national discipline,” insisting that the government remains committed to long-term structural changes rather than short-term economic fixes.

The President described the newly commissioned NRS headquarters as a symbol of institutional renewal and administrative efficiency, noting that it represents more than just a physical structure.

“This building is more than concrete and steel. It is a symbol of professionalism, transparency, efficiency and service delivery,” he said.

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Tinubu also tasked the Nigerian Revenue Service with evolving beyond revenue collection into a trust-building institution that reflects accountability and fairness in its operations. He stressed that taxpayers must see clear value for their contributions through improved public services and national development.

“The Nigerian Revenue Service must not only collect revenue, it must build trust,” he said, adding that institutions must demonstrate integrity and responsiveness to citizens.

He further acknowledged the challenges associated with economic reforms, noting that while such policies may cause short-term hardship, they are necessary for long-term prosperity and national stability.

Tinubu urged Nigerians to remain patient and supportive of ongoing reforms, saying sustainable development requires shared sacrifice and collective commitment.

The President also reiterated that Nigeria’s future depends on deliberate policy choices and strong institutions capable of driving inclusive growth and global competitiveness.

“We have chosen reform, we have chosen discipline, we have chosen progress,” he said. “We will stay the course until the promise of Nigeria is matched by the performance of its institutions.”

The commissioning of the NRS headquarters marks a key milestone in the federal government’s broader economic reforms in Nigeria, particularly in tax administration and public finance management, as authorities push to diversify revenue sources beyond oil dependence.