- NLC Calls for Immediate Wage Review Amid Rising Cost of Living
- Fuel Prices and Inflation Erode Impact of Previous Minimum Wage Increase
NLC Pushes Tinubu Government for Wage Increase to Cushion Inflation Effects
Nigerian workers, under the Nigeria Labour Congress (NLC), have demanded a 50% wage increase from the Bola Ahmed Tinubu administration to counter the worsening economic hardship caused by soaring inflation and rising fuel prices.
A senior executive of the NLC, told DAILY POST that the union had already initiated discussions with the government, emphasizing the urgency of a wage review distinct from minimum wage negotiations.
Call for Immediate Wage Review
“We have called on President Bola Ahmed Tinubu for a wage review. This is not about minimum wage negotiations but a response to the economic realities that have doubled the cost of living. The leadership of NLC will determine the exact amount to propose,” the NLC source explained.
The demand follows the July 2024 minimum wage increase to ₦70,000, which workers say has been rendered ineffective due to inflation and rising fuel prices.
Economic Pressures Worsen Workers’ Plight
The sharp rise in fuel prices, from ₦770.54 per litre in July 2024 to between ₦935 and ₦1,100 in January 2025, has exacerbated the cost of living. According to the National Bureau of Statistics, November 2024 inflation data showed headline inflation at 34.60% and food inflation at 39.93%, further eroding the purchasing power of Nigerian workers.
NLC President Joe Ajaero previously disclosed that the union accepted the ₦70,000 minimum wage increase as a temporary relief when Tinubu indicated he would support a higher adjustment if necessary. However, economic conditions have worsened since then, prompting calls for a 50% wage rise.
Tax Reform Bills Raise Additional Concerns
The NLC also expressed concerns over the four tax reform bills currently before the National Assembly, including the Nigeria Tax Bill 2024 and the Tax Administration Bill. Workers argue that the proposed threshold for zero-tax eligibility of ₦800,000 per annum excludes most Nigerians, effectively increasing the tax burden on already impoverished workers.
“At ₦70,000 monthly, a worker earns ₦840,000 annually, which means they would pay more tax under the current threshold. To truly exclude low-income earners, the threshold should be raised to ₦1.5 million,” the NLC official said.
The tax reforms, which the Tinubu administration says are necessary to retool the economy, have faced criticism from Northern governors, the National Economic Council, and other stakeholders, who argue that they will worsen economic inequality.
NLC’s Stance on Economic Policies
The NLC criticized the government for introducing policies that increase the burden on Nigerians instead of alleviating their suffering. The union called on the presidential economic team to focus on measures that reduce inflation and improve living conditions.
“Collecting more taxes from workers who cannot afford basic necessities like a bag of rice shows a lack of empathy. The government should prioritize reducing the burden on Nigerians rather than increasing it through taxation,” the NLC official added.
The NLC plans to officially write to the government for a wage review while urging the administration to reconsider its economic and taxation policies. Stakeholders are awaiting further announcements as the government navigates the balance between economic reform and public welfare.
