Nigerian president, Bola Ahmed Tinubu, on 18th July, 2024, in the presence of NLC president, Joe Ajaero and TUC president, Festus Osifo, approved a minimum wage of 70 thousand Naira for every Nigerian worker. He also promised to review it every 3 years. This is coming after years of struggle by Nigerian workers, with threats of strike, warning strikes and actual strikes.
The increase comes at a time Nigerians are asphyxiating under severe hardship amid excruciatingly high cost of living driven by spiraling inflation and dire economic challenges in an inclement environment of palpable government wastes, leakages and ostentatious living. Using a bag of rice as a metaphor, Nigerians have refused to indulge in any euphoria of jubilation as the 70 Thousand Naira will not even be able to buy a bag of rice which now sells for between 75 and 100 thousand naira per bag. They wonder how this meager enhancement of salary will positively affect the high cost of accommodation, transportation, electricity, healthcare services, living standards, etc.
The take-home pay of every worker ought to be a matter of public interest, especially to those minding the levers of power, because it is a critical issue affecting all workers, employers of labour and the entire economy. Poor compensation or remuneration breeds inequality and affects productivity and this can serve as a catalyst for social vices such as stealing, banditry, insurgency, kidnapping, suicide, homicide, armed robbery, prostitution, human and drug trafficking, etc.
With a view to addressing poor wages and its attendant consequences, international organizations, governments and non-governmental organizations have coined terms such as “minimum wage”, “living wage” and “reasonable wage” to describe the different types of wages every worker should be entitled to. In this intervention, I will address these levels of wages and make a case for a “reasonable wage”; as opposed to living and the just presidentially sanctioned minimum wage of 70 Thousand Naira.
Minimum Wage: Nigeria Vs Others
It is common knowledge that “wage” is the reward or compensation for labour. The terms “minimum wage,” “living wage” and “reasonable wage”, all relate to compensation for labour but differ in their definitions and implications. Here’s a brief explanation of each of those terms.
This is the lowest legal pay that an employer can offer employees. It is the least amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract. It is set by law and varies by country and sometimes by states or regions within a country. Sometimes, it can be arrived at by a collective agreement.
The minimum wage in Nigeria is ₦30,000 per month which is just 24.00 USD per month? By way of comparative analysis with some other countries globally, in Ghana, it is ₵18.19 (US$1.2) per day. In Equatorial Guinea, the minimum wage is FCFA 129,035 (US$224) per month. In the Republic of Congo, it is FCFA 90,000 (US$170) per month in the formal sector.
In Botswana, the minimum wage is P 7.34 (US$0.62) an hour for most full-time labour in the private sector; P 1,786 (US$152) per month. Rwanda RWF 56,668 (N64,602); South Africa R4,067.2 – R4,412.8 (N322,406.944 – N349,802.656); Kenya is KES15,201 (N172,683.36).
In Morocco, it is MAD 3,500 (US$349) per month in public sector, MAD 3,111 (US$310) per month in private sector, 84.37 Dh, (US$8.42) per day for agricultural workers.
In UAE, there is no general minimum wage as it differs from profession to profession. However, for skilled Labourers AED 5,000 (N2,019,435); people with University degrees AED12,000 (N4,846,644); qualified technicians AED 7,000 (N2,827,209); South Korea is 2,010,580 Won (N2,161,574.558). China differs from city to city. However, Shanghai is RMB 2,690 per month (N551,181) and Heilongjiang RMB 1,450 (N297,105).
Singapore does not prescribe a general minimum wage for all its workers. However, the minimum Singaporean wage is averaged at 6,792SGD/Month = N7,464,408).
The minimum wage in Canada is set federally and by each province and territory; ranges from CA$13 to CA$16 (US$9.69 to US$11.93) per hour. The minimum wage calculated here is a weighted average based on the relative population in each province. In Australia, most workers are covered by an award, which may vary by employee age, geographical location and industry. Workers receive mandatory employer loadings such as penalty rates or leave loading. Minimum wages are set federally by the Fair Work Commission. For those 21 and older, not covered by an award or other instrument, (as of July 1, 2023) – the minimum wage is $A 882.80 (US$600) per week, or $A 23.23 (US$15) per hour Casual workers are paid a loading of typically 25%, resulting in a minimum of A$28 (US$18) per hour for those workers. Workers under 21, apprentices and trainees not covered by an award, have a minimum wages set at a percentage of the ordinary rate. For those under 16, this is 36.8% or A$7.87 (US$5.25) per hour; $A 9.83 (US$6.56) with the casual loading. In France, it is €1,709.28 (US$2022) gross per month, €11.27(US$12.5) per hour.
€12.41 per hour is the minimum wage in Germany, a higher minimum wage is often set by collective bargaining agreements and enforceable by law.
In Palestine, it is 1,880 ILS (US$582) per month. In the United States of America, the Federal nationwide minimum wage in the United States is US$7.25 per hour. States may also set a minimum, in which case the higher of the two is controlling; some territories are exempt and have lower rates. As of January 3, 2022, effective state minimum wage rates range from US$7.25 to US$15.00 per hour, with an average of about $12.00 across all minimum wage workers as of 2019. Local government minimum wages exist as well, the highest of which reach to $17.13 per hour. The minimum wage in the United Kingdom is:
£11.44 stg (US$15.67) per hour for those aged 21+
£8.60 (US$11.78) per hour for those aged 18–20
£6.40 (US$8.77) per hour for those aged 16-17, apprentices aged 16 to 18, and those aged 19 or over who are in their first year of apprenticeship. Employees under the age of 16 are not entitled to the National Minimum Wage.
It is important to note that the term “minimum wage” does not mean minuteness or paltriness. The goal of the minimum wage is to ensure a basic standard of living for workers. However, the extant ₦30,000.00 (Thirty Thousand Naira) minimum wage in Nigeria cannot guarantee a basic standard of living. With this wage, it will take a worker three months to earn enough to buy a mere bag of rice.
In January 2024, the Federal government had inaugurated a 37-member tripartite committee to review the National Minimum Wage. The Nigeria Labour Congress (NLC) had insisted on a minimum wage of ₦250,000.00 (Two Hundred and Fifty Thousand Naira) given the uncontrollable inflation in the country and the value of the ever-depreciating naira against the dollar in an economy that is fast being dollarised.
