Daniel Otera
Amid soaring inflation and a cost of living that outpaces earnings, Nigerian workers and unions are intensifying calls for an immediate review of the national minimum wage, arguing that the ₦70,000 benchmark set in 2024 has been rendered obsolete by economic pressures. According to the National Bureau of Statistics (NBS), headline inflation eased slightly to 21.88 per cent in July 2025 from 22.22 per cent in June, yet this figure remains stubbornly high, eroding purchasing power and deepening poverty.
The Central Bank of Nigeria corroborates this, noting that year-on-year inflation for food items, a core driver, stood at 25.65 per cent in July 2025, pushing essentials like rice and transport beyond reach for many.
This backdrop has fuelled demands from the Nigeria Labour Congress (NLC) and federal civil servants, with some states already implementing higher wages, signalling a patchwork approach that could pressure the federal government into action.
In July 2024, Nigeria’s national minimum wage was revised for the first time since 2019. President Bola Tinubu signed the National Minimum Wage (Amendment) Act, which increased the minimum wage from ₦30,000 to ₦70,000. This revision applied across federal, state, and local governments, as well as the private sector. According to Premium Times and Reuters, the Act also reduced the review period for wage adjustments from five years to three, aiming to keep wages better aligned with inflation and rising living costs.
While the nominal wage doubled, its real value quickly declined due to persistent inflation and naira depreciation. Business Insider Africa reports that by mid-2025, the ₦70,000 minimum wage had effectively lost purchasing power, equivalent to only ₦55,379 compared to pre-2024 levels. This erosion highlights the gap between statutory wage adjustments and the actual cost of living, leaving workers with reduced financial stability.
The revised wage appears even more inadequate when compared to cost-of-living data. Expatistan estimates that a family of four requires approximately ₦2,289,209 per month to cover expenses excluding rent, while a single person needs around ₦1,103,437. These figures sharply contrast with the ₦70,000 wage, underscoring the insufficiency of the policy in addressing household needs.
Similarly, Numbeo ranks Nigeria 19th out of 24 African countries in terms of cost-of-living affordability, with an index score of 25.7 as of mid-2025. Although rents in major cities like Lagos are 60.7% lower than in the United States, they remain disproportionately high relative to average wages, further stressing Nigerian households.
The statutory increase of Nigeria’s minimum wage in 2024 provided only temporary relief, as inflation and weak currency performance eroded its value within a year. Comparative cost-of-living data shows that the ₦70,000 wage is insufficient to meet basic needs, suggesting that wage reforms without broader economic stabilisation may fail to lift workers out of poverty.
In August 2025, the Government of Imo State announced a significant wage increase, raising the minimum wage from ₦70,000 to ₦104,000. Governor Hope Uzodinma described the decision as part of wider efforts to protect worker welfare amid rising economic pressures. According to reports, the measure marked the highest minimum wage in the country at the time and was widely viewed as a bold move to improve labour standards in the state.
Earlier, in October 2024, Lagos State took the lead in adjusting wages by raising the minimum to ₦85,000, with Governor Babajide Sanwo-Olu pledging to reach ₦100,000 by 2025. This increase was designed to respond directly to escalating living costs in Nigeria’s most expensive state. Reports confirmed that the adjustment was scheduled to commence from November 2024, with the ₦100,000 target projected for January 2025.
Following Lagos, Rivers State approved a wage increase to ₦85,000 on October 18, 2024, while Bayelsa, Niger, Enugu, and Akwa Ibom implemented a uniform ₦80,000. Analysts noted that these states, many of which are oil-producing or resource-rich, were able to make quicker adjustments compared to others, highlighting disparities in fiscal strength among Nigeria’s federating units.
Other states opted for slightly lower figures. Ogun and Delta States agreed to ₦77,000, while Benue and Osun States settled at ₦75,000. Ondo State took a more conservative approach at ₦73,000. These amounts, although above the federal benchmark, were still considered modest when compared with wage scales in the wealthier southern states.
Despite these advances, reports from labour unions and media outlets showed that as of May 2025, up to 20 out of Nigeria’s 36 states had not yet implemented even the ₦70,000 federal minimum wage. This situation exposed sharp inequalities in wage policy and raised concerns about compliance and enforcement across the federation.
In response to the inconsistencies, the National Salaries, Incomes and Wages Commission (NSIWC) began a review of the national minimum wage framework. Officials noted that strict compliance could deliver broader economic benefits, including improved worker productivity, reduced industrial disputes, and a stronger consumer base.
Labour unions have been vocal, framing the issue as a survival crisis. Acting General Secretary of the NLC, Mr Benson Upah, told the News Agency of Nigeria (NAN) that “the truth is that ₦70,000 is not sustainable under the present economic situation. Workers are under immense pressure, and unless the government responds quickly, the crisis of survival will only worsen.”
He added, “We have since engaged the Federal Government on this matter at different times and forums. It is our hope that the government would see both the economic and moral obligations to do so expeditiously.” Upah hinted at potential industrial action if dialogue fails, urging unity among workers. Similarly, the President of the Association of Senior Civil Servants of Nigeria (ASCSN),
Mr Shehu Mohammed, commended state increases as “a welcome development and an eye-opener,” pushing for a federal living wage benchmark of ₦250,000 originally demanded during negotiations.
“Right from the beginning, during the negotiation, our demand was for a living wage, and we submitted ₦250,000 as a reasonable benchmark. We told the government that anything short of that only takes a worker to the gate of the office, not back home,” he explained.
Mohammed highlighted how high electricity tariffs, transport, and food prices have devalued ₦70,000: “Let’s be realistic. Even if you pay electricity bills out of ₦70,000, what remains cannot sustain a family for 10 days.”
In Lagos, the NLC chapter demanded ₦150,000 in August 2025, citing the state’s higher living costs, where Numbeo’s data shows urban expenses 30-40 per cent above national averages.
Nationwide, May Day 2025 rallies amplified these calls, with unions like the NLC and Trade Union Congress (TUC) protesting the wage’s inadequacy amid a 133 per cent nominal increase that inflation has negated.
The Peoples Democratic Party (PDP) in Abia echoed this, insisting workers “can no longer survive on ₦70,000.”
Organised labour is advocating for annual reviews, as stated in a Channels Television interview on January 1, 2025.
Workers’ testimonies reveal the human cost. Federal civil servant Mrs Kemi George shared with NAN: “By the time I pay transport to work and buy food, nothing is left. Rent and school fees are almost impossible to cover. It is only God that has been sustaining us because our take-home pay is nothing compared to what we spend in a month.”
Mr Obi Chimaobi described it as “unbearable,” noting “a bag of rice is now like gold, transport fares keep rising daily, and with ₦70,000, you are already in debt before the month even ends.”
Mrs Bola Akingbade argued, “A well-paid workforce is a motivated workforce,” emphasising productivity gains.
Mr Jeremiah Okon suggested ₦150,000 as equitable, viewing increases as economic stimulants through higher spending.
Economists remain divided on whether minimum wage hikes automatically improve household welfare in Nigeria. A 2025 paper in the Nigerian Journal of Economics and Social Studies (NJESS) used a Dynamic Stochastic General Equilibrium (DSGE) model to show that wage increases often fail to raise living standards unless supported by broader pro-poor growth policies. The study cautions that without complementary measures such as affordable housing, healthcare, and subsidies, wage hikes alone may not significantly alter household welfare.
Implementation remains another obstacle. The International Institute for Policy Research and Development Strategies (IIPRDS) observed in April 2025 that weak enforcement disproportionately affects female civil servants, worsening gender inequality. The study stressed that inflationary pressures, inconsistent state-level adoption, and wage delays often leave women worse off compared to their male counterparts.
While wage hikes may reduce poverty and raise disposable income, the benefits are not always clear-cut. A July 2025 ResearchGate study using a Computable General Equilibrium (CGE) model found that minimum wage increases improved household welfare but triggered marginal inflationary effects. The researchers concluded that prompt implementation and inflation control measures are vital to prevent wage gains from being eroded by rising prices.
Beyond direct household income, wage hikes may have broader labour-market effects. Studies suggest they reduce wage dispersion and encourage higher productivity, which can in turn stimulate local businesses. Organised labour groups, including the Nigeria Employers’ Consultative Association (NECA), have urged states to exceed ₦70,000 to ensure sustainability and protect productivity gains.
Any discussion of wages must be placed against the backdrop of Nigeria’s rising cost of living. The National Bureau of Statistics (NBS) estimated that Nigerians spent over ₦721 billion monthly on internet access alone in July 2025 (TechCabal, 2025). Similarly, Wise.com pegged Nigeria’s average cost-of-living index at 31.4 in April 2025 (Wise.com, 2025). These figures highlight that wage reforms must be embedded in wider economic policies that tackle rising prices in essential goods and services.
The evolving landscape of wage reforms in Nigeria points to 2025 as a pivotal year. While the federal government has set a ₦70,000 benchmark after the 2024 strike settlement, state-level variations and uneven implementation have created a mosaic of wage levels across the federation.
Trade unions such as the Association of Senior Civil Servants of Nigeria (ASCSN) have pressed for a holistic review one that links wages to social policies in housing, healthcare, and transport. Without such comprehensive measures, wage hikes alone cannot restore dignity or economic stability.