Two Nigerian academics have warned that repeated increases in the national minimum wage, without broader economic reforms, are unlikely to significantly improve living standards as inflation continues to erode workers’ purchasing power.
In a policy analysis, Gesiye Salo Angaye and Preye Angaye said the ₦70,000 national minimum wage, signed into law by President Bola Tinubu, has been undermined by rising inflation and the increasing cost of living.
The experts argued that inflation accelerated following the removal of petrol subsidy and the floating of the naira, leading to higher prices for transport, housing, education and other essential goods and services.
“A pay rise that isn’t matched by more goods and services on the shelves rarely stays a pay rise for long. It becomes a price rise instead,” they stated.
Citing National Bureau of Statistics data, the authors noted that about 93 per cent of employed Nigerians work in the informal sector, meaning most workers do not directly benefit from the minimum wage but are affected by higher living costs.
They also highlighted disparities in states’ internally generated revenue, saying these differences have made implementation of the new wage uneven across the country.
The experts recommended productivity-driven wage growth, increased investment in education, healthcare, infrastructure and agriculture, stronger support for small businesses, prudent fiscal management and reforms that strengthen economic productivity. They concluded that sustainable wage growth should be supported by a more productive economy rather than relying solely on periodic wage adjustments.
