Nigeria's Public Sector Workers Set for Minimum Wage Increase Amid Spiraling Cost of Living

Public sector workers in Nigeria will see their minimum wage double under a new agreement reached with labor unions. The unions had been threatening further strikes due to rising living costs. The new monthly wage of 70,000 naira is still far below the unions' demand. Federal lawmakers must pass a law to approve the increase.

Public sector workers in Nigeria are set to see their minimum wage double following an agreement reached on Thursday between the government and labour unions. The unions had been gearing up for further strikes as living costs soared.

The revised minimum monthly wage is now 70,000 naira (USD 44), which is significantly lower than the nearly 500,000 naira the unions initially demanded. This decision comes amid economic challenges, noted Nigerian Labour Congress President Joe Ajaero, post-negotiation with President Bola Tinubu in Abuja.

However, the pay increase won't take immediate effect; federal lawmakers need to pass new legislation to finalize it.

Since taking office in May of last year, Tinubu has enacted various policies, including the removal of fuel subsidies and the unification of exchange rates, which resulted in the naira's devaluation against the dollar.

Consequently, gasoline prices more than doubled, pushing inflation to a three-decade high of 34.1 percent last month.

Despite the hike in the minimum wage still falling short of workers' expectations, Nigerian governors have warned that many states cannot afford even the proposed 70,000 naira. The new law would obligate them to meet this pay increase.

Nigeria, a top crude oil producer, remains one of the world's poorest nations, hindered by chronic corruption. This disparity is evident as public officials live in stark contrast to the general populace.

Strikes by lecturers and medical professionals over low wages are common, yet politicians continue to receive substantial salaries and perks.

Notably, President Tinubu sanctioned millions of dollars for sport utility vehicles last year, including for his wife's office, which is not officially recognized.

(With inputs from agencies.)