Nigeria’s Minimum Wage Should Be N76, 000 Based On Economic Realities- Labour

The Nigerian Labour Congress has said that the current minimum wage does not reflect the current economic realities in Nigeria and needs to be adjusted to at least N76, 000 monthly.

The Head International Relation of the NLC, Uche Ekwe, said this on Tuesday during Channels TV SunriseDaily programme.

The push for a better wage for the country’s working class has intensified particularly with the alleged refusal of some State Governments to pay the N30, 000 approved in 2019 by President Muhammadu Buhari.

Compared to South Africa which is said to be the second largest economy in the continent behind Nigeria, Nigeria’s minimum wage which is N30,000 is 351.3 per cent lower than the N105, 400 (R4,000) a worker in South Africa earns in a month.

The rate per hour in South Africa is N577 (R21.69), based on the increment in the National Minimum Wage for workers in the country.

Eke said, “We still have Governors who reason that there shouldn’t be a minimum wage at all. Taking into cognisance the exchange rate, taking into cognisance the cost of leaving, practically, a national minimum wage will not be anything less than N76,000.”

But he said an exchange rate and price reflective minimum wage has been frustrated by most state governments.

As of 2019 when the new minimum wage became effective, inflation was 11.37 percent, while the price of fuel was N145.78 based on the National Bureau of Statistics Petrol Price Watch for January 2019. But with the new tariff increment, prices has hit N180 at the market

The naira at the official window was exchanged at N307 per dollar and N360 at the unofficial market, against the current rate which has skyrocketed to N480 at the parallel market.

The currency may face another round of devaluation at the official rate as the Central Bank suggested last week.

Electricity tariff also has risen to N48.12 per kilowatt hour as against N24.08 which it was in January 2019.

Ekwe said, “As cheap as it is, these same governors who are opposed to it, are still opposed to it and feel so hurt that they feel that minimum wage must be removed so that they can get the State Assembly which we know are in the pocket of the Governors, so that they can even approve N5,000 as minimum wage for the people.

“How can the week coarse the strong? Out of our own relative weakness, in consideration for the nation, we conceded a cheap national minimum wage.”

He said the security danger of a low minimum wage has been neglected by state governments.

“Calculate N30,000 how much it translates to a dollar. But let us not even bother about the dollar let us use it in naira.

“It means that the family of a low level worker who is on N30, 000 minimum wage, a man and the wife with four children will leave on N1,000 a day to eat food, to wash their clothes and pay their house rent,” he added.