Was Minimum Wage in Nigeria Actually Increased?


Tuesday December 01, 2020 / 9:16 AM / by United Capital Research / Header Image Credit: Shutterstock 

In April 2019, President Muhammadu Buhari signed the new minimum wage bill into law amid rising living costs and poverty levels, thus increasing minimum wage by 62.2%, from N18,500 to N30,000. This came amid agitations from the National Labour Congress. While this was implemented across board in the public sector, it must be noted that the private sector operates with a different template, which may mean that minimum wage would be complied with but not necessarily adjusted across board for all cadres.  Till date, however, amid the devastating impact of the coronavirus pandemic, Nigerian policy makers have had to make certain tough decisions whose net impact have invariably crushed disposable income of Nigerians, probably resulting in a net reduction in real wage rate.

For context, FG's border closure has continued to worsen food prices; VAT increment, from 5.0% to 7.5%, has hurt  disposable income;  the removal of petrol subsidy has led to an increase in pump price by 12.4% to N165.0 and electricity tariffs hike by c61.3% from cN31.0/kwh to cN50.0/kwh, have all taken a huge toll on the citizenry. Despite the arguable necessity of these reforms, inflation is currently at a 33-month high with an incredibly harsh impact on purchasing power in Nigeria.  

Recently the finance minister disclosed plans to reopen the land borders - a welcome move that would likely reduce inflationary pressures. Going forward, as the wider inflationary impact continues to worsen welfare, the FG is likely to further review some of the recent reforms to palliate the economic woes of Nigerians. 

Proshare Nigeria Pvt. Ltd.

Related News

  1. Microinsurance And The New National Minimum Wage
  2. President Buhari Signs N30,000 National Minimum Wage Into Law
  3. Implications Of FGN's Increase Of VAT Rate To Pay For The New Minimum Wage
  4. Technical Committee on Minimum Wage to look for Additional Revenue - Udoma
  5. FG to Transmit New National Minimum Wage Bill to NASS on January 23, 2019
  6. NLC Strike, Minimum Wage Issues and Nigeria's Economy
  7. 2018 Nigerian Workers Day: Discourse on the Proposed New Minimum Wage
  8. History of NLC Strikes in Nigeria
  9. NLC Communique On Planned Nationwide Strike From November 06, 2018
  10. NLC Strike, Minimum Wage Issues and Nigeria's Economy


 Proshare Nigeria Pvt. Ltd.

 Proshare Nigeria Pvt. Ltd.

Related News