What You Should Know About Nigeria’s Minimum Wage And How It Remains One Of The Lowest In Africa

Since the removal of the fuel subsidy, measures to mitigate the economic fallout put forward by the Bola Tinubu-led administration are yet to yield the intended results as the cost of living continues to rise.

According to the National Bureau of Statistics (NBS), headline inflation increased from 24.08 percent in July 2023 to 25.80 percent in August 2023. One of the most critically hit sectors is the transportation industry. The average fare paid by commuters for bus journeys within the city per drop, on a year-on-year basis, rose by 121.81 percent from N602.48 in August 2022.

These increased living costs are occurring alongside the minimum wage remaining at $40 per month, a reality for two-thirds of the country’s population (133 million Nigerians) who live on less than $2 a day.

In June, the Trade Union Congress of Nigeria, TUC, proposed a 566 percent increase in the minimum wage from N30,000 to N200,000. On August 2, 2023, the Nigeria Labour Congress (NLC) and TUC, after a meeting with the Federal government, agreed that while a wage award of N35,000 will be paid to only Federal Government workers beginning from the month of September, a minimum wage committee shall be inaugurated.

What is the Minimum Wage?

The minimum wage refers to the lowest wage rate that employers are legally obligated to pay their employees for their work. It is set by the government to ensure that workers receive fair and minimum compensation for their labor.

In Nigeria, the determination of the minimum wage involves a process that considers various factors. The National Minimum Wage Act establishes the legal framework for setting the minimum wage in the country. In 2019, the Tripartite Committee on National Minimum Wage was established, consisting of government representatives, organized labor unions, and private sectors. This committee reviewed and increased the minimum wage from ₦18,000 to ₦30,000.

With a GDP of $500 billion, Nigeria is Africa’s largest economy but has one of the lowest minimum wages on the continent.

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For context, Equatorial Guinea, with a nominal GDP of $16 billion, pays its workers a minimum of N149,400 per month, more than five times Nigeria’s minimum wage.

While five months into the administration of Bola Tinubu, the Federal Government is yet to propose a new minimum wage, here are 20 African countries and their minimum wage.