Moghalu Recommends New Minimum Wage Amid Labour’s Consideration Of ₦100,000

Moghalu Recommends New Minimum Wage Amid Labour’s Consideration Of ₦100,000

Former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has expressed support for organized labour’s consideration of ₦100,000 as the minimum wage for Nigerian workers. This comes in the wake of a strike declared by labour unions on June 3, protesting the new minimum wage and the recent hike in electricity tariffs for Band A customers………..CONTINUE READING

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had initially proposed significantly higher figures of ₦615,500 and ₦494,000, respectively, as the new national minimum wage, citing inflation and economic hardship. However, the strike was suspended following a meeting with the Federal Government to allow for further negotiations.

In a post on his X handle, Moghalu argued that while the NLC’s demand is justifiable, it is not realistic given Nigeria’s current level of productivity. He suggested a more feasible minimum wage range of ₦75,000 to ₦100,000.

Moghalu emphasized the importance of enhancing productivity through human capital development and improved electricity infrastructure. He stated, “In the debates on the national wage in Nigeria, we miss the fundamental point: there is little or no productivity in the economy. If we had a truly productive economy, there is no reason we can’t have the kind of minimum wage of 400 or 500K that Labour wants. But we can’t, because the level of productivity in the economy cannot support it.”

He further highlighted that the minimum wage impacts not just government salaries but also the private sector and household staff wages. Moghalu cautioned against setting a minimum wage that could exacerbate inflation, suggesting instead a range that balances economic realities and workers’ needs.

“All of this is why, all things considered, including avoiding a minimum wage that multiplies already ravaging inflation (assuming such a wage can even be paid), I recommend a minimum wage of between N75,000 and N100,000. In fact, speaking about productivity, how productive is an average Nigerian worker? How skilled is he or she, and thus how much value does he or she create?” Moghalu questioned

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