New Minimum Wage: NLC Warned of Risk Ahead If Demand is Approved

New Minimum Wage: NLC Warned of Risk Ahead If Demand is Approved

  • A public affairs analyst has raised serious doubts about whether a new minimum wage would translate to real gains for Nigerian workers
  • The NLC is demanding a wage review following the recent fuel price hike and worsening cost of living across the country
  • Questions are mounting over compliance with the existing minimum wage among several states and private employers

A public affairs analyst has cast doubt on the practical impact of raising Nigeria's minimum wage, warning that an increase could remain largely cosmetic given the poor enforcement of the current rate.

Omotayo Yusuf made the observation in an interview with Legit.ng, reacting to the Nigeria Labour Congress's (NLC) call for a new minimum wage. The NLC has pushed for the review in response to rising fuel prices and a deteriorating cost of living that has squeezed household incomes across the country.

The NLC has been warned that a new minimum wage may not be effective if approved now.
NLC warned against calling for a new minimum wage Photo Credit: @NLCHeadquarters
Source: Twitter

Yusuf acknowledged that higher wages are, in principle, beneficial to workers, arguing that better pay would strengthen their purchasing power. However, he cautioned that the reality on the ground is far more complicated.

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He noted:

"A higher minimum wage is in the best interest of Nigerians, except that even the current minimum wage: how many states are effecting it, and how many private enterprises are also effecting it?"

No compliance with existing minimum wage

He pointed out that compliance with the existing minimum wage remains patchy, with some state governments and a number of private businesses yet to fully implement what is already law. Against that backdrop, he questioned whether a new, higher figure would fare any differently.

"It is in the best interest of workers to get higher wages in order to improve their purchasing power, but it does not work like that; a lot is taken into consideration," Yusuf noted.

His concern is that an upward revision, however well-intentioned, could end up as a figure on paper rather than money in workers' pockets. "It might end up in a situation where, if it is increased, it might reflect on paper, but in reality, there would be little or minimal change in the remuneration that Nigerian workers get," he added.

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The NLC's demand comes as Nigerians continue to grapple with the economic fallout from fuel subsidy removal, which sent petrol prices sharply higher and triggered broad increases in the cost of goods and services. Workers' groups have argued that salaries have failed to keep pace with inflation, leaving millions of employees unable to meet basic needs.

Analyst has lamented that the current minimum wage is not being fully implemented and the NLC is already demanding for another issue.
Analyst says the current minimum wage is not being implemented Photo Credit: @NLCHeadquarters, @officialABAT
Source: Twitter

NLC writes FG on new minimum wage

Legit.ng earlier reported that the NLC President, Joe Ajaero, wrote to the Labour Minister on October 13, 2026, rejecting the government's position on when a minimum wage review should start.

Minister of Labour, Dr Muhammed Dingyadi, told the NLC that commencing a fresh review barely two years after the N70,000 wage took effect would disrupt industrial relations.

The dispute came after the NLC used its Independence Day statement to demand wage negotiations begin immediately amid rising living costs.

Source: Legit.ng

Authors:
Bada Yusuf avatar

Bada Yusuf (Politics and Current Affairs Editor) Yusuf Amoo Bada is an accomplished writer with over 5 years of experience in journalism and writing, he is also politics and current affairs editor with Legit.ng. He holds B.A in Literature from OAU, and Diploma in Mass Comm. He has obtained certificates in Google's Advance Digital Reporting, News Lab workshop. He previously worked as an Editor with OperaNews. Best Editor of the Year for Politics and Current Affairs Desk (2023) by Legit.ng. Contact: bada.yusuf.amoo@corp.legit.ng