The minimum wage in Nigeria has been a trending topic for a while now. It is a thing of concern for the Nigerian government, the Nigeria Labour Congress, and the entire citizens of the country.
Breaking it down by definition, let’s look at what Wages are.
What are Wages?
Wages are monetary compensation paid to an employee or a worker in exchange for their services or labour. Wages are often paid on an hourly, daily, or weekly basis.
Wages consist of basic pay, overtime pay, allowances, bonuses, benefits, and so on. It can also be classified as gross wages (before deductions), or net wages (after deductions).
Wages are required for workers to be able to cater for their needs, as well as other family needs.
What is Minimum Wage?
A minimum wage is defined in Nigeria as the lowest amount that an employee is entitled to be paid in exchange for their labour, works, or services. It is the financial compensation that is recognised by the law and legally binding on employers to their employees.
For instance, the minimum wage recognised legally under the law as signed by the former President Muhammadu Buhari as of 2019, was N30,000.
Minimum Wage in Nigeria applies to employers in every capacity and jurisdiction, including those under federal, state, and local government. And since it is legally binding, those found wanting are sanctioned, fined, or penalised.
What is The Minimum Wage in Nigeria Today?
The minimum wage in Nigeria today is N70,000. Seventy thousand naira was the amount approved by President Bola Tinubu in July 2024 as Nigeria’s minimum wage. Following this announcement, the minimum wage moved from N30,000 to N70,000.
Though the approved minimum wage is still being unimplemented in some states in Nigeria, however, the number of states that have started paying workers the approved minimum wage continues to make headlines.
The minimum wage in Nigeria was increased to N70,000 in a bid to improve the standard of living in the country following the reports of increase in fuel price, food stuffs and other basic necessities of life.
Reasons and Benefits of Minimum Wage
Like in Nigeria, the increase in minimum wage was clamoured for in order to help workers adjust to the inflation that has left many with concerns, as well maintain the purchasing power of the earnings of the people.
The need to ensure workers receive fair compensations for their labour, as well as reduce poverty to its barest propels the protest for increased minimum wage.
That being said, an increased or higher minimum wage is beneficial and essential to boost consumer spending and economic activity; reduce income inequality, and enhance productivity and job satisfaction in organisations.
Conclusion
While the approved minimum wage of N70,000 still leaves people grappling with the reality of inflation, those earning less find it challenging to make ends meet. Hence minimum wage is a subject that requires urgent attention, especially when exploitation, poverty, poor standard of living is the order of the day.
Having a workforce with financial security promotes economic growth, boosts consumer spending and reduces income inequality among the people.
As a Nigerian worker, what is your idea of minimum wage, and do you think it is the best way to approach the inflation in Nigeria? Join the conversation by dropping your comments.
