Nigeria Agrees on New Minimum Wage Amid Economic Turmoil

Nigeria’s major labor unions and the government have agreed on a new minimum wage of 70,000 naira ($44) a month. This decision, reached after months of negotiations, comes amid soaring inflation and economic reforms that have significantly lowered workers' disposable incomes. Parliament will now review the proposal to pass it into law.

Nigeria's main labor unions and the government have reached a critical agreement on a new minimum wage of 70,000 naira ($44) a month, resolving months-long deadlock and averting potential strikes.

With Africa's most populous nation facing its worst cost of living crisis in a generation, fears of protests akin to those seen in Kenya were mounting. The Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) have consistently argued that President Bola Tinubu's reforms, which have led to skyrocketing prices and a weakened currency, were severely impacting working-class Nigerians.

The newly announced wage, presented by Minister of Information Mohammed Idris alongside union leaders, more than doubles the previous minimum of 30,000 naira set in 2019.

NLC President Joe Ajaero expressed mixed feelings about the new minimum wage, citing ongoing economic challenges but stressed the need to move forward with the agreement to prevent prolonged negotiations. The wage is set for review every three years, a departure from the usual five-year period. Strikes that were suspended in early June remain a potential threat should the agreement falter.

Minister Idris indicated that President Tinubu will expedite the proposal's passage into law. Tinubu has refrained from reversing several unpopular reforms, such as hikes in electricity and gasoline prices. Additionally, the president has requested lawmakers to approve $4 billion in extra spending to cover budget shortfalls, with significant investment planned for infrastructure and renewable energy projects aimed at easing transportation costs.

($1 = 1,580.0000 naira) (Writing by Elisha Bala-Gbogbo; Editing by Alison Williams, Susan Fenton, Philippa Fletcher)

(With inputs from agencies.)