TUC Links Naira Stability To Real Value Of Minimum Wage
Nigeria’s Workers’ Day observance has reopened debate on the real value of wages, with labour leaders warning that salary increases alone cannot shield workers from deepening economic pressure without currency stability.
The President of the Trade Union Congress of Nigeria, Festus Osifo, said the Federal Government must address what he described as the undervaluation of the naira alongside any review of the national minimum wage. His position was stated during an appearance on Channels Television’s “The Morning Brief” on Friday.
Osifo argued that wage adjustments and currency reforms are interdependent, noting that raising salaries without strengthening the naira would not significantly improve workers’ purchasing power. “It is a double edge approach… if you address both of them at the same time it has a direct impact on the purchasing power,” he said, adding that even a ₦1 million minimum wage would be ineffective if the currency remains weak.
Nigeria’s current minimum wage stands at ₦70,000, signed into law in 2024 by Bola Tinubu after prolonged negotiations with organised labour. However, inflationary pressures have continued to erode real incomes, with food prices and transportation costs rising sharply over the past year.
Recent global developments, including tensions linked to the Iran conflict and resulting oil price increases, have further complicated the outlook. Despite Nigeria’s status as an oil-producing nation, higher crude prices have not translated into relief for workers. Instead, Osifo noted that the trend has coincided with increased inflation, a weaker naira, and a higher cost of living.
Economic data from Nigeria’s statistics office show inflation has remained elevated in recent months, placing sustained pressure on household spending. Analysts have also pointed to exchange rate volatility as a key factor driving imported inflation, particularly for fuel, food, and industrial inputs.
Within this context, the TUC is advocating a broader policy response that goes beyond wage reviews. Osifo called for comprehensive labour and economic reforms, including measures to address wage disparities and the growing prevalence of casual employment, which he said leaves many workers without adequate protections.
The debate reflects a wider policy dilemma facing authorities: balancing wage growth with macroeconomic stability. While labour unions continue to push for improved earnings, policymakers are also grappling with currency management, inflation control, and fiscal constraints.
As Workers’ Day highlights the condition of Nigerian workers, the central issue remains whether coordinated economic reforms can restore the real value of earnings in an environment marked by persistent price pressures.