Stakeholders Reject Labour’s Pay Rise Demand, Seek Action On Inflation, Insecurity

Stakeholders have expressed divergent views over the calls by the Nigeria Labour Congress (NLC) for a new national minimum wage of N1 million and the proposal by the Nigeria Governors’ Forum (NGF) for N100,000, insisting that tackling inflation and addressing key structural challenges should take precedence over fresh wage increases.

The stakeholders argued that while workers deserve better welfare, repeated wage increases without addressing the underlying causes of economic hardship would only worsen inflationary pressures and further erode purchasing power.

Speaking to LEADERSHIP, they maintained that efforts should focus on stabilising the foreign exchange market, curbing inflation, improving electricity supply, tackling insecurity, and reviving local manufacturing and small-scale enterprises to drive sustainable economic growth.

According to them, past experience shows that wage increases are often followed by sharp rises in the prices of goods and services, leaving workers no better off than before.

They noted that once prices rise, they rarely fall, adding that any significant wage increase could trigger increases in house rents, transportation fares, and the cost of essential goods and services.

The stakeholders also called for stronger regulatory mechanisms to check arbitrary price increases and protect consumers from exploitative practices.

Commenting on the issue, the chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said labour welfare discussions in Nigeria have become overly centred on wage negotiations despite the country’s deep-rooted economic challenges.

According to Yusuf, “While wage adjustments are necessary and often justified, they are clearly insufficient as a standalone strategy for improving workers’ welfare. In an economy characterised by persistent inflationary pressures, structural bottlenecks and weak public service delivery, nominal wage increases are frequently eroded within a short period.”

He stressed that improving workers’ welfare requires broader economic reforms aimed at reducing inflation, improving productivity and enhancing the business environment.

Human rights activist, Comrade Victor Oriola, described the N1 million minimum wage demand as unrealistic, although he acknowledged that the current N70,000 minimum wage has been significantly weakened by inflation.

“N100,000 is small as minimum wage because of the present hyperinflation, but talking about N1 million is ridiculous,” he said.

Oriola warned that excessive wage increases without corresponding productivity growth could destabilise the economy.

He urged governments at all levels to invest more in public transportation through Compressed Natural Gas (CNG) buses and prioritise agriculture to reduce food inflation.

He also emphasised the need to tackle insecurity, saying the persistent attacks on farming communities have worsened food shortages and increased rural-urban migration.

Another human rights activist, Comrade Fred Egoma, warned that a fresh wage hike could trigger another round of inflation, ultimately hurting ordinary Nigerians.

“The cry for a salary increase will only impoverish the populace who have been at the mercy of harsh economic realities, as prices of goods and services would rise further, making the increment another setback,” he said.

Similarly, the general secretary of the Federation of Informal Workers of Nigeria (FIWON), Comrade Gbenga Komolafe, argued that wage increases alone would not address the immediate needs of workers and citizens.

According to him, both formal and informal sector workers require stronger social protection measures and improved security across the country.

“Nigerian workers need social security and protection. Government should prioritise tackling insecurity. There is a need for a dual approach. The military must continue dismantling criminal networks and securing vulnerable communities, while government addresses the socio-economic conditions that make recruitment into criminal activities attractive,” he stated.

Komolafe added that a hungry and economically vulnerable population would remain susceptible to exploitation by criminal groups, regardless of wage increases.

The stakeholders therefore urged government, labour unions and policymakers to shift attention from wage negotiations alone and focus on addressing inflation, insecurity, unstable power supply and foreign exchange challenges, which they described as the real drivers of economic hardship facing Nigerian workers.