Inflation: Organized labour to push for annual increment of minimum wage in 2025

Labour leaders argue that the traditional practice of revising wages every three to five years is outdated and fails to address the financial realities faced by Nigerian workers amid rising costs of living.

Festus Osifo, President of the Trade Union Congress (TUC), revealed this during an interview on Channels Television’s Politics Today on January 1, 2025. “What we are pushing on for Labour is that instead of you (the government) waiting for five years to increase the minimum wage, you will now look at the inflation of the last five years and try to make some adjustments, why can’t we reflect the inflation on an annual basis?” Osifo queried, emphasizing the need for a wage system that aligns with real-time economic indicators.

According to Osifo, both the TUC and the Nigeria Labour Congress (NLC) are united in this advocacy. They propose that adjustments to the minimum wage be made annually, using the inflation rate as reported by the National Bureau of Statistics (NBS).

“For example, we have entered January 2025, by the 15th of January 2025, the National Bureau of Statistics is going to release the inflation figure for December,” Osifo explained.

Osifo highlighted the inadequacy of the current minimum wage, noting that while the ₦70,000 benchmark was a significant improvement over the previous ₦30,000, it is far from sufficient in a country grappling with astronomical increases in the cost of living. This reality has been exacerbated by the removal of petrol subsidies and a corresponding surge in energy costs.

“So, what we are pushing for as Labour is that, if for example, the inflation figure is 35%, apply that 35% to the ₦70,000 minimum wage so that it will become reflective of what the true value is. When we get to 2026, you will also do similar application. That is actually what we are pushing. We shouldn’t be waiting for five years.  

“In the new Act now is three years to do those adjustments but we could be doing them systemically by applying the inflation as of December of the preceding year to what the minimum wage is.  

“This is part of the position that we are also going to canvass this year. We started the conversation last year but we will continue it in 2025.” 

In July 2024, following extended negotiations, the Federal Government and labour unions settled on a ₦70,000 minimum wage, a decision later ratified by President Bola Tinubu.

“In 2025, our government is committed to intensifying efforts to lower these costs by boosting food production and promoting local manufacturing of essential drugs and other medical supplies,” Tinubu explained. “We are resolute in our ambition to reduce inflation from its current high of 34.6% to 15%.”