Economist Advocates Minimum Wage Of Nothing Below N100,000 For Nigerian Workers

Economist Advocates Minimum Wage Of Nothing Below N100,000 For Nigerian Workers

In a recent interview with Channels Television, Paul Alaje, Chief Economist and Partner at SPM, argued that the minimum wage for Nigerian workers should be set at a minimum of N100,000 by the federal government…..READ ALSO Why Prices Of Food Won’t Immediately Drop Despite Naira Appreciation – Insights from Economists

Alaje pointed out that Nigeria has historically reviewed its minimum wage five times, with the last increase from N30,000 in 2018 to N125 in 1981. He emphasized that to lift Nigerian workers out of the poverty bracket, the minimum wage should range between $100 and $200.

Highlighting the impact of rising costs of transportation, energy, goods, imported items, and food in Nigeria, Alaje suggested that the minimum wage should ideally be set between N130,000 and N250,000 in 2024.

He stressed the importance of ensuring that workers earn an income that enables them to escape poverty, underscoring that nothing less than N100,000 would suffice as a minimum wage.

This recommendation aligns with the organized labour’s proposal of N615,000 as the minimum wage, pending the Nigerian Government’s counteroffer. Amidst soaring inflation in Nigeria, which reached 33.22 percent in March 2024 compared to 11.44 percent in December 2018, the call for a minimum wage review becomes increasingly urgent.

Meanwhile, during the May Day celebration, President Bola Ahmed Tinubu’s Government assured workers of an imminent minimum wage review, reflecting the growing recognition of the need to address workers’ economic challenges amidst Nigeria’s economic realities.

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