Inflation: Labour Pushes For Minimum Wage Increase In 2025

As inflation continues to rise, labour unions in Nigeria are calling for a minimum wage increase in 2025 to help workers cope with the economic pressures.

The Organized Labour is advocating for an annual increase to the ₦70,000 minimum wage for workers in Nigeria.

Labour stated that it’s crucial for the minimum wage paid to workers to increase annually in line with inflation.

TUC boss Festus Osifo, speaking on Channels Television’s Politics Today on January 1, 2025, urged Labour to advocate for annual adjustments to the minimum wage based on inflation rates from each preceding year. He criticized the current approach of waiting five years before considering an increase and suggested reflecting inflation-related changes more regularly instead.

The president of the Trade Union Congress (TUC) stated that both TUC members and their counterparts in the Nigeria Labour Congress (NLC) have initiated discussions on this matter.

He explained, “For instance, as we move into January 2025, the National Bureau of Statistics is set to release the December inflation figure by January 15th.”

As Labour, we are advocating for the idea that if inflation is at 35%, then this percentage should be applied to the current ₦70,000 minimum wage. This adjustment would ensure it accurately reflects its true value in light of rising costs.

“When we reach 2026, you will undertake a similar application. That’s precisely what we’re advocating for; there’s no reason to wait five years.”

According to the new Act, there is now a three-year period for making those adjustments. However, we could implement these changes systematically by adjusting the minimum wage based on the inflation rate as of December in the previous year.

“This is one aspect of the position we plan to promote this year. We initiated the discussion last year, and we’ll carry it on in 2025.”

In July 2024, following lengthy negotiations, the Federal Government and labor unions agreed on a minimum wage of ₦70,000. This figure was subsequently approved by President Bola Tinubu.

The increase occurred five years after the previous review set it at ₦30,000. However, due to a sharp rise in living costs—linked to energy prices more than quadrupling and the removal of petrol subsidies—labor unions argue that ₦70,000 is insufficient for workers’ needs and are therefore advocating for a fair living wage.