The Organized Labour, led by the Trade Union Congress (TUC) and Nigeria Labour Congress (NLC), is advocating for annual adjustments to the ₦70,000 minimum wage to account for inflation. This move aims to ensure that workers’ wages remain reflective of the rising cost of living in Nigeria.

Speaking on Channels Television’s Politics Today on January 1, 2025, TUC President Festus Osifo emphasized the need for a dynamic wage system tied to inflation rates, rather than the current periodic adjustments.

“What we are pushing for as Labour is that instead of the government waiting for five years to review the minimum wage, adjustments should be made annually based on inflation,” Osifo said.

He explained the proposed mechanism, noting that inflation figures released by the National Bureau of Statistics (NBS) each December could serve as a basis for the yearly adjustment.

“For instance, by January 15, 2025, the NBS will release the inflation figure for December 2024. If inflation is at 35%, apply that 35% to the ₦70,000 minimum wage so that it reflects the true value. When we get to 2026, the same principle should apply,” Osifo added.

The ₦70,000 minimum wage was introduced in July 2024 after months of intense negotiations between the Federal Government and labour unions. It replaced the ₦30,000 minimum wage set in 2019. However, the astronomical rise in living costs, exacerbated by the removal of petrol subsidies and increased energy prices, has led labour unions to argue that ₦70,000 is no longer sufficient for workers to meet basic needs.

Osifo highlighted that while the Minimum Wage Act now provides for reviews every three years, Labour believes systemic annual adjustments tied to inflation would be more effective in cushioning workers from economic shocks.

“This is part of the position we are going to canvass this year. We started the conversation last year, and we will continue it in 2025,” he said.

Labour’s push for annual adjustments reflects a growing concern over the erosion of workers’ purchasing power. With inflation driving up the cost of goods and services, the current minimum wage falls short of meeting basic living standards for many Nigerians.

Labour unions have reiterated their commitment to engaging the government to achieve what they describe as a “decent living wage” for workers.

The Federal Government has yet to respond to the proposal, but the call for a more adaptive wage structure is expected to dominate labour discussions in the coming months.

As Nigeria enters 2025, the challenge of balancing wage adjustments with broader economic realities remains a critical issue for both workers and policymakers.