Labour to engage FG on minimum wage review

The Nigeria Labour Congress and the Trade Union Congress said they will restart negotiations with the Federal Government over a new national minimum wage, warning that workers can no longer cope with rising living costs as inflation continues to erode real incomes.

The unions are pushing for what they described as a “genuine living wage” to replace the current framework, which they said no longer reflects Nigeria’s economic realities, particularly sharp increases in food, transport, housing, and healthcare costs.

The position was contained in a joint address delivered at the 114th International Labour Conference in Geneva on Monday, where the unions also rejected any proposal to tax the minimum wage or impose additional fiscal burdens on low-income earners.

Nigeria’s current minimum wage of N70,000 was signed into law on 18 July 2024, in an agreement between organised labour and the federal government. President Bola Tinubu formally announced the wage on 19 July 2024, and it took effect on 29 July 2024.

The agreement originally set a three-year review cycle, shifting from the previous five-year arrangement. However, in January 2025, the Federal Government adjusted the framework, announcing that the minimum wage would now be reviewed every two years, effectively setting 2026 as the next review point.

In light of this, labour leaders said they intend to formally open discussions with the federal government ahead of the July 2026 wage renegotiation deadline, in a bid to prevent the delays that have often hindered previous minimum wage reviews.

“The current Act expires early next year, and we have announced that renegotiation will commence by July 2026 to avoid the painful delays of the past. As soon as we leave here, we shall write again to the government demanding the commencement of the process for renegotiating the national minimum wage,” the unions said.

The labour leaders said workers are already under severe pressure from inflation, currency depreciation, and rising costs across essential services, arguing that official economic indicators do not reflect the daily realities of most households.

They warned that taxing the minimum wage would worsen poverty and deepen economic hardship at a time when many citizens are struggling to meet basic needs.

“We demand nothing less than a genuine living wage that reflects today’s harsh economic realities. We also demand immediate relief measures by governments at all levels until a new minimum wage is signed into law. We reject outright any attempt to tax the minimum wage or impose further burdens on the poor,” the unions said in their communiqué.

The unions stressed that the upcoming negotiations must go beyond nominal wage adjustments and instead focus on protecting real incomes, which they said have been steadily eroded by inflation.

They also urged federal and state governments to introduce short-term relief measures pending the conclusion of negotiations, warning that delays could heighten industrial tensions across the country.

Beyond wage concerns, the labour movement used the Geneva platform to highlight broader economic and social challenges, including insecurity, unemployment, and rising poverty levels.

They said insecurity in several parts of the country has made commuting increasingly dangerous for workers, with killings, abductions, and displacement affecting productivity and livelihoods.

According to the unions, nearly 2,000 people were killed in the first quarter of the year, while millions have been displaced, with entire communities and economic activities disrupted by violence.

They warned that worsening insecurity could force workers to remain at home as a survival response, escalating tensions beyond traditional labour action if not urgently addressed.

The labour leaders also said about 65 per cent of Nigerians, estimated at roughly 150 million people, are currently living in multidimensional poverty, driven by inflation, job losses, and declining purchasing power.

They argued that while macroeconomic reforms are aimed at stabilisation, they have yet to translate into improved living standards for ordinary citizens.

As the 2027 general elections approach, the unions said they are developing a charter of demands to shape their engagement with political actors and inform their support for candidates, noting that  only political actors who commit to improved security, functional public services, wage reforms, and protection of labour rights would receive their backing.

The labour movement also raised concerns over alleged interference in union affairs in some states, accusing certain governments of undermining democratically elected labour leadership structures.

They emphasised that organised labour would resist any attempt to weaken union independence or impose external control on labour organisations.

As the current wage regime approaches its 2026 review window, the unions said their priority remains securing a wage structure that reflects economic realities and protects workers from further erosion of income.

They maintained that the outcome of the upcoming negotiations would determine whether Nigerian workers receive what they termed a “living wage” or continue to endure worsening economic hardship.