CEM REPORT, ECONOMY| An average Nigerian worker is estimated to spend approximately ₦9,000 daily on food, translating to a staggering ₦270,000 monthly. Transportation costs are projected to be equally high at ₦110,000 per month.
To this end, Nigerian workers need a minimum wage of ₦615,000 per month to afford basic necessities, according to the Nigeria Labour Congress (NLC).
This proposal, more than twenty times the current minimum wage of ₦30,000, has sparked debate across the nation.
The NLC argues the proposed figure is based on a thorough analysis of living costs, with food and transportation consuming a significant portion of income.
NLC President Joe Ajaero emphasizes the need for transparency: “We felt it imperative to inform Nigerians…the foundations upon which our initial demand…is based.” Their research, conducted through questionnaires distributed nationwide, aimed to capture the living expenses of an average family of six.
NLC Rationale:
NLC President Joe Ajaero emphasized the painstaking research that went into formulating the ₦615,000 proposal.
“The figure is a product of a detailed effort to capture the cost of living for Nigerian workers and families across the country,” Ajaero said in a statement.
The NLC conducted an independent survey across all 36 Nigerian states, targeting members in every local government area. The NLC clarifies the research focused on a family with two working parents and four children, excluding additional dependents. Questionnaires sent to NLC and Trade Union Congress (TUC) affiliates across Nigeria gathered data on essential expenses.
However, the NLC acknowledges they deliberately omitted certain costs from the calculation, including Call data; Religious offerings; Community dues; Entertainment; Savings; and Security.
These exclusions highlight the bare minimum required for survival, emphasizing the urgency of their demand.
Rising Costs and Worker Challenges
The NLC further emphasizes that their proposed minimum wage doesn’t factor in recent economic hardships, such as:Increased electricity tariffs; Petrol scarcity leading to higher transportation costs
Ajaero warns that a lower minimum wage would be a “starvation wage,” condemning workers to poverty. He underscores the urgency of the situation, reminding everyone the previous minimum wage expired in April 2024. Negotiations for a new wage should have begun six months prior, but delays have caused hardship for workers.
The NLC expresses confidence that their proposal demonstrates “understanding, sacrifice, and reasonableness.” They urge social partners, including the government and employers, to accept their demands for a just and equitable minimum wage that fosters national development.
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Many Nigerians are struggling to make ends meet on the existing minimum wage, which hasn’t been updated since 2019. With inflation soaring and the cost of basic necessities skyrocketing, the NLC argues that the current wage is simply insufficient.
Breaking Down the Numbers
The NLC estimates a single person spends approximately ₦9,000 daily on food, translating to a staggering ₦270,000 monthly. Transportation costs are projected to be equally high at ₦110,000 per month.
Furthermore, Housing is projected at ₦40,000, Electricity at ₦20,000; Utility at ₦10,000, and Kerosene/Gas at ₦35,000. Also, Medical was put at ₦50,000, Clothing at ₦20,000, Education estimated at ₦50,000 and Sanitation at ₦10,000 per month.
If You Ask Me
The NLC’s proposal has ignited a national conversation. While workers yearn for a wage that reflects the rising cost of living, concerns remain about the economic feasibility. My questions are;
Can businesses, particularly small and medium enterprises (SMEs), afford such a significant increase in labour costs?
Will the government be able to adjust its budget to accommodate the new minimum wage for public sector employees?
Could a higher minimum wage lead to inflation, further squeezing household budgets?
Open discussions and negotiations involving the NLC, government, and private sector are crucial to finding a solution that balances worker needs with economic stability.
In the coming weeks, Nigerians will be following developments closely. Will the NLC’s proposal be accepted? Or will a compromise solution be reached? The outcome will significantly impact the lives of millions of Nigerian workers and their families.
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