Former Nigerian Labour Congress (NLC) President and former Governor of Edo State, Comrade Adams Oshiomhole, has expressed concern that Nigerian workers today are financially worse off compared to previous generations.
He shared these views during a lecture for participants of the Executive Intelligence Management Course 17 at the National Institute of Security Studies in Abuja.
In his speech, Oshiomhole drew attention to the sharp decline in the value of Nigeria’s minimum wage over the years. He explained that the current minimum wage of N70,000 translates to merely $42 when calculated at the current exchange rate of N1,650 to one dollar. This, he argued, represents a significant erosion of purchasing power for Nigerian workers.
Oshiomhole provided historical context, comparing today’s minimum wage to the early 1980s when Nigeria established its first minimum wage under President Shehu Shagari. “When the minimum wage in Nigeria was first set under President Shagari, it was around N125, about $160 a month,” he stated. “Today, even with a 100% increase last year, the wage now equates to just $42. Working people are much poorer now than they were decades ago, and this loss in purchasing power affects their quality of life.”
The former NLC leader emphasized that while the recent increase to N70,000 was intended to improve workers’ living standards, the rapid devaluation of the naira means that the amount still falls short of meeting the basic needs of most Nigerians. He encouraged the federal government, as well as revenue-generating states, to consider raising the minimum wage beyond the agreed level to address the economic challenges facing workers.
Oshiomhole also called for the extension of minimum wage coverage to include domestic workers and employees of smaller enterprises, suggesting that the existing laws be amended. “The law currently applies only to companies with a minimum of 25 to 50 employees,” he explained. “In today’s economy, where small ICT firms with fewer employees can generate substantial revenue, using employee numbers as a criterion is outdated.”
By broadening the scope of minimum wage laws, Oshiomhole argued, Nigeria could address the wage disparities affecting a larger segment of the workforce. He believes that expanding this coverage is essential for building an economy that is fair and responsive to the needs of modern-day Nigerian workers.
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