Nigeria’s current struggle with rising inflation and other economic headwinds has ignited a fresh call for an increase in minimum wage by a Nigerian lawmaker.
In a poignant address to the House of Representatives, Rep. Aliyu Madaki of NNPP-Kano State sounded the alarm on the pressing issue of inadequate minimum wage for Nigerian workers. Madaki said that a monthly salary below N100,000 is insufficient to sustain a dignified livelihood in the face of skyrocketing inflation rates and escalating living costs across the nation.
Highlighting the fundamental rights enshrined in the United Nations Universal Declaration of Human Rights, Madaki referenced Article 23, which upholds the entitlement of every employed person to a fair and beneficial salary that ensures their well-being and that of their families.
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Madaki outlined the adverse impact of rising prices on essential goods and services, making basic necessities such as food, water, shelter, education, healthcare, transportation, and clothing increasingly unaffordable for the average Nigerian worker. He pointed out that despite government efforts, including the removal of fuel subsidy in May 2023 with accompanying palliatives, the mitigating effects have been outweighed by the relentless surge in living expenses.
He drew attention to a report by Trade Economics in 2018, which estimated the living wage for an individual Nigerian and a Nigerian family at N43,200 and N137,600 per month, respectively, before the subsidy removal. However, he stressed that present economic realities necessitate a minimum wage of at least N100,000 to meet the basic needs of workers and their families.
“Recall when the fuel subsidy was removed in May 2023, the Federal Government offered palliatives to cushion its effects.
“However, the ameliorative effect of this measure has been overtaken by the continued rise in the cost of goods and services.
“We are aware that a wage award was granted by the president recently, but the purchasing power is low, owing to the continued rise in the cost of living in the country and the fall of the naira.
“Further note that presently, no laborer can live in Nigeria with a wage of less than N100,000.00,” he said.
The plight of Nigerian workers has been exacerbated by the removal of fuel subsidies, leading to inflationary pressures that erode the purchasing power of their wages. Calls for an increase in the minimum wage have been growing louder, with demands spearheaded by labor unions, ranging from N250,000 to N200,000 per month, reflecting the urgency of the situation.
To address these concerns, the federal government inaugurated a 37-member tripartite committee on national minimum wage, tasked with recommending a new minimum wage for Nigerian workers. Chaired by Bukar Goni Aji, former head of service of the federation, the committee comprises representatives from the federal and state governments, the private sector, and organized labor.
While the committee is expected to come up with a new minimum wage package soon, there is concern about the implementation. Some governors have found it hard to pay the current N30,000 ( about $20) monthly, despite the increase in the federal government’s monthly revenue allocation to states. This has created concern that many states will not be able to implement a living wage.