Labour Erupts Over Minimum Wage Tax, Demands Better Pay For Nigerians

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have announced plans to reopen negotiations with the Federal Government over a new national minimum wage, warning that Nigerian workers are increasingly unable to cope with the rising cost of living.

The labour unions attributed the hardship to inflation, currency depreciation, and escalating costs of essential needs such as food, transportation, housing, and healthcare, which they said have steadily eroded workers’ purchasing power and rendered the current wage structure inadequate.

Their position was outlined in a joint address presented at the 114th International Labour Conference held in Geneva on Monday.

According to the unions, they will push for the introduction of what they described as a “living wage,” arguing that the current minimum wage framework no longer reflects Nigeria’s prevailing economic conditions.

Nigeria’s current minimum wage of ₦70,000 was signed into law on July 18, 2024, following an agreement between organised labour and the Federal Government. President Bola Tinubu formally announced the wage on July 19, 2024, and it came into effect on July 29, 2024.

Although the agreement initially provided for a three-year review cycle, the Federal Government later adjusted it in January 2025 to a two-year review cycle, meaning the next review is expected in 2026.

The labour leaders said they would begin discussions ahead of the July 2026 renegotiation deadline to avoid delays experienced in previous wage review processes.

They stated: “The current Act expires early next year, and we have announced that renegotiation will commence by July 2026 to avoid the painful delays of the past. As soon as we leave here, we shall write again to the government demanding the commencement of the process for renegotiating the national minimum wage.”

The unions also firmly rejected any proposal to impose taxes on the minimum wage, warning that such a move would worsen poverty and deepen economic hardship among low-income earners.

They insisted that workers require a genuine living wage that reflects current economic realities and called for immediate relief measures from all levels of government pending the conclusion of negotiations.

“We demand nothing less than a genuine living wage that reflects today’s harsh economic realities. We also demand immediate relief measures by governments at all levels until a new minimum wage is signed into law. We reject outright any attempt to tax the minimum wage or impose further burdens on the poor,” the unions said.

They stressed that upcoming negotiations must go beyond nominal wage adjustments and focus on safeguarding real income, which they said has been consistently weakened by inflation.

The unions further urged both federal and state governments to implement short-term relief measures to ease economic pressure on workers, warning that continued delays could trigger increased industrial unrest nationwide.

On broader national issues, organised labour raised concerns over insecurity, unemployment, and rising poverty, describing them as major threats to workers’ welfare and national productivity.

They noted that insecurity across several regions has made commuting increasingly dangerous, with cases of killings, abductions, and displacement affecting livelihoods and workplace attendance.

The unions claimed that nearly 2,000 people were killed in the first quarter of the year, while millions had been displaced due to ongoing violence in affected communities.

They warned that worsening insecurity could force workers to avoid workplaces for safety reasons, potentially escalating tensions beyond conventional labour disputes if left unaddressed.

Labour leaders also stated that about 65 per cent of Nigerians—approximately 150 million people—are currently living in multidimensional poverty, blaming the situation on inflation, job losses, and declining purchasing power.

While acknowledging government economic reforms aimed at stabilisation, they argued that such policies have yet to translate into meaningful improvements in living conditions.

Looking ahead to the 2027 general elections, the unions said they are preparing a charter of demands to guide their engagement with political actors and determine which candidates may receive labour support.

They stated that only candidates committed to security improvements, functional public services, wage reforms, and protection of labour rights would earn the backing of organised labour.

The labour movement also raised concerns over alleged interference in union affairs in some states, accusing certain governments of undermining democratically elected labour structures.

They pledged to resist any attempt to weaken union independence or impose external control on labour organisations.

As the 2026 wage review approaches, the NLC and TUC reaffirmed that their priority remains securing a wage system that reflects current economic realities and protects workers from further income erosion.

They maintained that the outcome of the upcoming negotiations will determine whether Nigerian workers receive a true living wage or continue to face deepening economic hardship.