Chief Economist and Partner at SPM, Paul Alaje, has recommended that the federal government’s minimum wage review should be no less than N100,000. This revelation was made during an interview with Channels Television on Thursday.
Alaje highlighted that Nigeria’s minimum wage has undergone five historical reviews, increasing from N30,000 in 2018 to N125 in 1981. He emphasized that in order for Nigerian workers to break out of the poverty cycle, the minimum wage should range between $100 and $200.
In anticipation of rising costs of transportation, energy, goods, imported items, and food in Nigeria, Alaje suggested that the government consider setting the minimum wage between N130,000 and N250,000 by 2024.
He stated, “To lift individuals out of poverty, they must earn around $100 to $200 monthly. Thus, we advise the government to not settle for anything below N100,000.”
It is worth noting that organized labor proposed a minimum wage of N615,000, awaiting the Nigerian Government’s response. President Bola Ahmed Tinubu’s administration assured workers of an imminent minimum wage review during the May Day celebration.
The urgency for a minimum wage adjustment stems from Nigeria’s surging inflation, reaching 33.22% in March 2024 compared to 11.44% in December 2018.