October 02, 2023

Nigeria: Temporary Minimum Wage Increase Granted

In honour of Nigeria’s Independence Day on Sunday, 1 October, President Bola Tinubu announced that the country’s minimum wage will be increased to 25 000 naira.

“Based upon our talks with labour, business, and other stakeholders, we are introducing a provisional wage award, increment, to enhance the federal minimum wage without causing undue inflation,” the 71-year-old head of state said during a televised national address.

Along with the minimum wage increase, the government has declared that a three-month income subsidy will be given to 15 million poor households, and a pause in value-added tax on diesel.

The move comes just two days before local labour unions intend to lay down their tools in an indefinite strike to protest the sharp rise in the cost of living since May, when Tinubu first stepped into office.

Since then, Tinubu’s party has removed the desperately needed fuel subsidy and adjusted the West African country’s economic trading policies in an effort to attract foreign investment.

The wage increase – which is expected to take effect this month – still falls far below the 200 000 naira local unions originally requested. Reactions have been varied, with some Nigerians feeling they should be grateful for the respite, while others feel it’s simply still not enough.

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