Labour Reopens Minimum Wage Battle As ₦70,000 Loses Value

 

Two years after President Bola Tinubu signed the National Minimum Wage (Amendment) Act 2024 into law, the Nigeria Labour Congress has declared the ₦70,000 floor unfit for present economic conditions and signalled the start of a fresh round of wage bargaining with the Federal Government, setting up what promises to be one of the most consequential industrial relations contests before the 2027 general elections.

The declaration came on Friday at the Nigeria Rights of Workers Summit 2026 in Birnin Kebbi, Kebbi State, an event convened to mark 88 years of legally recognised trade unionism in Nigeria and themed “The Rights of Workers: Decent Work and a Just Economy in Nigeria.” The summit drew labour leaders, government officials, workers, employers, civil society organisations and representatives of the National Industrial Court, with discussions centred on remuneration across the 36 states, the local governments and the private sector, alongside workplace safety, discrimination, job insecurity and the protection of casual and other non traditional workers.

Speaking on behalf of the NLC President, Joe Ajaero, the Deputy President of the Congress, Adewale Adeyanju, popularly called Amba, identified the national minimum wage as the single largest grievance before Nigerian workers. “The current ₦70,000 minimum wage can no longer adequately respond to the realities confronting Nigerian workers, particularly with the rising cost of living,” he said. He added that the expiration of the existing wage arrangement had made fresh negotiations with the Federal and State Governments imperative, urging authorities to consider an upward review reflecting prevailing conditions. Several news organisations covering the Birnin Kebbi summit reported that Amba put labour’s opening figure at ₦500,000 a month, and that he said the timeframe for the ₦70,000 award lapsed in July.

Official data explain why the wage question has returned so quickly. The National Bureau of Statistics put headline inflation at 15.91 per cent in June 2026, marginally down from 15.93 per cent in May, with month on month prices still rising by 1.66 per cent. Food inflation, however, moved in the opposite direction, quickening to 17.52 per cent in June from 16.96 per cent in May, its fifth consecutive monthly acceleration, while housing and utilities inflation climbed to 11.19 per cent from 9.79 per cent.

The disinflation of the past 18 months has therefore been uneven. NBS figures cited by the World Bank show headline inflation falling from 34.80 per cent in December 2024 to 15.15 per cent in December 2025, a drop of 19.65 percentage points, yet the price level itself never fell. Energy costs illustrate the gap between statistics and household experience. The NBS Premium Motor Spirit Price Watch for May 2026 recorded a national average pump price of ₦1,596.25 per litre, a 55.31 per cent rise from ₦1,027.76 in May 2025 and 4.13 per cent above the ₦1,532.93 recorded in April 2026. At that average, the entire ₦70,000 monthly minimum wage buys roughly 44 litres of petrol.

Measured against the currency, the picture is similar. With the official Nigerian Foreign Exchange Market rate quoted around ₦1,368 to the dollar in early August 2026, and the parallel market trading near ₦1,405, ₦70,000 converts to about $51 a month.

Any assessment of the minimum wage must reckon with how narrow its legal reach is. The NBS Nigeria Labour Force Survey for the second quarter of 2024 put informal employment at 93.0 per cent, self employment at 85.6 per cent and the share of employed persons working as employees at just 14.4 per cent. Unemployment stood at 4.3 per cent under the revised methodology, with time related underemployment at 9.2 per cent. In practical terms, statutory wage floors bite hardest in the public service and the organised private sector, while the overwhelming majority of Nigerian workers negotiate their earnings outside any enforceable benchmark.

The poverty data give the debate its urgency. The World Bank’s Nigeria Development Update of April 2026 recorded the share of Nigerians below the poverty line rising from 56 per cent in 2023 to 61 per cent in 2024 and 63 per cent in 2025, about 140 million people. Its Country Partnership Framework for 2026 to 2032, approved in July 2026, stated that “Thirty-three per cent of its population is ultra-poor (food insecure by age-weighted caloric intake), 61 per cent is below the poverty line, and 79 per cent is near poor (below the poverty line or vulnerable to falling back into poverty).” The Bank noted that reforms had stabilised headline indicators, with growth improving and reserves above $42 billion, but that the gains had not yet reached most households. The Federal Government has previously disputed some of these interpretations.

Trade unionism acquired legal standing in Nigeria through the Trade Union Ordinance No. 44 of 1938, which allowed any five workers to register a union. Academic accounts record 14 registered unions with about 4,629 members by 1940, a figure that expanded rapidly in the decades that followed. The wage floor itself has moved in long, irregular jumps: ₦125 in 1981, ₦250 under General Ibrahim Babangida in 1989, ₦5,500 for state workers and ₦7,500 for federal workers in 2000, ₦18,000 in 2011, ₦30,000 in 2019 and ₦70,000 in 2024.

The 2024 settlement followed a nationwide strike. Labour opened at ₦494,000, later revised to ₦250,000, against a federal offer of ₦62,000, before the parties agreed ₦70,000 on July 18, 2024. The Act was signed on July 29, 2024, with the review cycle shortened from five years to three. That shortened cycle is now itself contested. Labour argues the arrangement has run its course, while the statutory three year review points to 2027, and no tripartite negotiating committee has been publicly inaugurated.

Government has, however, conceded the principle. Speaking at the Good Governance Summit 2026 in Abuja, the Chief of Staff to the President, Femi Gbajabiamila, said the administration would review the ₦70,000 wage to reflect current realities, noting that the review cycle had been deliberately shortened so wages could keep closer pace with the economy. Ajaero, addressing journalists at the 114th Session of the International Labour Conference in Geneva in June, said renegotiation would begin by July 2026 “to avoid the painful delays of the past,” and rejected any move to tax minimum wage earners. Separately, the Joint National Public Service Negotiating Council was reported to have written to the Head of the Civil Service of the Federation on March 12, 2026, demanding ₦154,000 and a 120 per cent adjustment of salaries and allowances.

Implementation has never been uniform. Compilations of state pay structures show Imo State at about ₦104,000, Ebonyi at ₦90,000, Lagos and Rivers at ₦85,000, Niger, Enugu, Akwa Ibom and Bayelsa at ₦80,000, Ogun at ₦77,000, Edo and Kebbi at ₦75,000, Osun at ₦75,554.28, Ondo at ₦73,000, Kogi at ₦72,500, Kaduna at ₦72,000 and Gombe at ₦71,500, while some states are still working through full implementation. Ajaero himself pointed to this spread in Geneva, saying, “Some states are paying N85,000, some are paying N100,000.”

Kebbi State Governor Nasir Idris, whose administration commenced ₦75,000 payments in October 2024, told the summit his government would abide by whatever emerges nationally. “Whatever is agreed upon at the national level on the minimum wage, Kebbi State will implement it,” he said, adding that he would press the case for better remuneration at the Nigeria Governors’ Forum.

Former NLC President Ayuba Wabba cautioned that the conversation should not narrow to figures alone. “Decent work is not only about wages. It is also about workers’ rights, social protection and meaningful social dialogue between workers, employers and government,” he said, urging policies that guarantee dignity, job security and adequate social protection.

The convener of the summit and Executive Director of Call a Lawyer, Ekpa Stanley, framed the anniversary as a moment for stocktaking. “This summit is not only about celebrating 88 years of trade unionism; it is also an opportunity to reflect on what has been achieved, the challenges that remain, and what must be done to guarantee decent work for Nigerian workers,” he said.

Participants also pressed for stronger enforcement of labour laws, improved workplace safety, protection against discrimination and greater attention to workers outside formal employment structures. The NLC has separately campaigned for the transmission of tripartite reviewed labour bills to the National Assembly, a process Ajaero has described as long delayed.

The summit closed with goodwill messages from labour leaders, affiliate unions and representatives of the National Industrial Court, and awards to individuals including Governor Idris for contributions to workers’ welfare.

What follows now depends on how quickly a tripartite committee is constituted, on the fiscal room available to the 36 states and 774 local governments, and on whether inflation continues its gradual descent. With the 2027 elections approaching, the arithmetic of wages is unlikely to remain a purely economic conversation for long.