Nigerian Workers Push for 50% Wage Increase Amid Soaring Inflation

As inflation continues to rise unchecked, Nigerian workers are advocating for a 50% salary increase to combat the growing cost of living and economic challenges.

Nigerian workers have once more called upon President Bola Ahmed Tinubu’s government to implement a minimum wage increase of 50 percent in order to mitigate the effects of rampant inflation in the country.

In an exclusive interview with the DAILY POST on Monday, a senior executive of the Nigeria Labour Congress (NLC), who wished to remain anonymous, reiterated the demand.

The demand for a wage increase arrives just six months after the minimum wage was raised in July 2024.

The workers are urging the presidential economic team to reinforce policies that have been causing difficulties for Nigerians in recent months.

We have urged President Bola Ahmed Tinubu to conduct a wage review, emphasizing that this differs from negotiating the minimum wage.

We had a meeting with the Secretary to the Government of the Federation, attended by about seven or eight ministers.

They concurred that the country’s inflation necessitates a wage review. We will formally request this from the government in writing.

Regarding the proposed wage review, the NLC leadership will convene to decide on the specific amount. You may recall that prices have doubled since the last minimum wage adjustment.

“The NLC source advised that the President and his media team should persist in enforcing their stringent economic policies.”

At the time of filing this report, attempts to reach NLC spokesperson Benjamin Upah and Secretary Emmanuel Ugboaja were unsuccessful.

Reports indicate that the primary reason for demanding a wage increase is the rising cost of living in Nigeria.

Remember that Tinubu had stated, during discussions leading up to the N70,000 minimum wage increase, he would agree to a N250,000 raise if fuel prices were also increased.

The President of the NLC, Joe Ajaero, affirmed that Tinubu’s stance was why the union agreed to the N70,000 minimum wage increase.

Although Tinubu approved a minimum wage increase in July last year, the benefits of the N70,000 hike were diminished due to rising Premium Motor Spirit prices and other macroeconomic issues.

For example, the average fuel price was N770.54 per litre in July 2024 and increased to between N935 and N1,100 by January 13th, 2025.

Between the time when the minimum wage was approved and now, fuel prices—a key factor influencing the cost of goods and services—have increased by N339, or 30 percent.

According to the National Bureau of Statistics’ November report on the Consumer Price Index and Inflation, headline inflation increased to 34.60 percent while food inflation reached 39.93 percent.

For this reason, the declining value of the N70,000 minimum wage has prompted Nigerian workers to call for a salary increase.

Additionally, addressing the controversy surrounding the four tax reform bills presently before the National Assembly, a member of the NLC urged Tinubu to adjust the threshold for workers eligible for zero taxation from N800,000 per year to N1.5 million.

He agreed with NLC president Joe Ajaero’s recent statement that the structure of the tax bill, combined with a minimum wage of ₦70,000, would result in most workers having to pay more taxes to the federal government.

According to the source, due to the current tax bill structure, all Nigerian workers are expected to pay higher taxes.

Reports indicate that in his inaugural media chat, President Tinubu stated the necessity of four tax bills—namely, the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—to rejuvenate the economy.

Despite this, the bills continued to spark controversy. Opposition came from Northern governors, the National Economic Council, and other leaders in Northern regions.

In response, the NLC source criticized that rather than alleviating the hardships faced by Nigerians during this period of soaring living costs, the government intends to increase their burden.

“You are offering a minimum wage of N70,000 and intend to exempt only those earning between N0-N800,000 from being taxed.”

What does that indicate? Multiplying N70,000 by 12 months results in N840,000. This means every Nigerian worker will contribute more in taxes to the federal government.

If the government truly intends to exclude lower-income earners, then the threshold should be set at N1.5 million instead of N800,000, as inflation has diminished the value of the Naira.

What is the purpose of collecting taxes from people who are already impoverished and unable to afford a bag of rice?

He stated that the government should focus on alleviating Nigerians’ burdens rather than increasing them through taxation.

According to reports, Ajaero urged the Nigerian government to address issues related to the tax bills.