A single worker in any of Nigeria’s urban centres would need to earn a minimum of N372,300 monthly to reasonably survive what has become the new normal across cities, data analysed by The Guardian revealed.
The amount falls below what could be regarded as a living wage as it is stripped of social life spending, skills development budget, guest entertainment, family support and other frivolities but includes a modest savings to reasonably cover immediate costs in case of job loss. It is N302,300 above the current N70,000 national minimum wage.
The revelation comes a few months into 2027, when the current minimum wage would be ready for review. Already, labour leaders are demanding as much as N1,000,000, forcing employers, who are reeling from the high cost of energy and other production rigidities, to call for a fair new wage floor setting.
The cost of living has increased geometrically in the past three years, following the removal of the fuel subsidy, which increased the price of premium motor spirit (PMS) by 600 per cent, and naira depreciation, a direct result of the foreign exchange (FX) market liberalisation.
The Guardian’s ideal wage model captures key personal expenditure lines, including accommodation, food, daily commuting, health, personal care, clothing and a modest contingency savings. The model assumes that the individual in life is self-reliant and does not have to support any other members of his family, a simplified assumption that does not reflect the real situation.
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To keep the analysis simple, however, The Guardian assumes that the support the young Nigerian worker, who is typical of somebody at an entry labour level, gets is valued as much as he or she gives.
The analysis suggests that an individual, perhaps a young Nigerian just starting his/her adult life, mirrored by the theoretical analysis, would need N372,300 monthly to sustain modest needs; otherwise, such an individual becomes beggarly.
Housing, which takes a major part of the value (about 34 per cent) would require N125,000 set aside monthly. Data from different rental platforms put the cost of a room apartment across Nigeria between N500,000 and N2.5 million depending on cities and locations. The estimate puts the mid value at N1.5 million or N125,000 per month. Since many landlords demand a yearly rent, the employee will be required to save N125,000 monthly to offset his modest accommodation.
Many workers surveyed for the story put their daily commuting cost at an average of N4,500, from a low of N3,000 and a peak of N6,000. Taking 22 as the number of workdays in a month, commuting to and fro requires a total budget of N99,000, which workers typically deduct from their salaries.
The National Bureau of Statistics’ (NBS) recent data put the average cost of a healthy meal (CoHD) per adult per day at N1,589. That leaves the monthly average at N47,670, or 68 per cent of the current minimum wage. This is perhaps the least anybody could spend on meals monthly. A young worker would need to make his lunch at home to keep the cost of feeding at this minimum level. At mama put, where many low-income earners take their lunch, a plate of work costs as much as N2,000.
Supposing the employer does not provide health insurance, the employee may need to choose from government-funded health insurance, such as Lagos State’s Ilera Eko, and private sector-managed schemes. Most workers considered the private sector scheme, which costs between 25,000 and 70,000 in yearly subscriptions, more efficient.
At a median of N47,500 yearly enrolment expenses, monthly subscription averages N3,958. If the workers choose to fund their occasional medical bills, they could spend much more than N47,500 yearly.
There are cost components such as utilities and personal care, which The Guardian estimated at N15,000 and N20,000, respectively. For a decent outlook, the employee may also need to budget about N30,000. Many consultants recommend that about 15 per cent of monthly salaries be set aside for clothing.
Considering the self-reliance assumption, the referenced workers need to maintain minimum contingency savings for a temporary out-of-job eventuality. The Guardian assumes a six-month adjusted cost of living equivalent savings in three years. The adjusted cost of living is stripped of daily commuting costs and contingency savings, which will not be required when the employee is assumed to be living on savings. The employee would need N32,326 monthly to achieve a three-year cumulative saving of N1.164 million; he needs to retain his dignity for six months; he may need to secure another job.
This comes as the battle for the next national minimum wage has begun in earnest, with inflation and a sharply weakened naira setting the stage for what is expected to be the most contentious wage negotiations in the country’s democratic history.
A source familiar with minimum wage negotiations, who hopes for a smooth outcome, hinted that preliminary discussions have been held on the next round of national minimum wage negotiations, with both parties acknowledging the need to begin consultations early.
“Back-end discussions have started on the need to start on time and the Minister has no contrary opinion. Part of the agreement is the need to increase substantially such that it allows workers to have a meaningful and dignified life. That will be a win for workers,” a source said.
At the last wage negotiation, organised labour unveiled their minimum wage proposals, ranging from N615,000 to N1 million for a hypothetical six-member family (two parents and four children) using accommodation, food and nutrition, utilities and energy, healthcare and education among others, as cost of living parameters.
The proposals were ultimately adjusted downwards as negotiations proceeded, resulting in the official N70,000 national minimum wage that was signed into law in July 2024.
While many private sector workers receive far above the minimum wage, states like Imo are leading, paying N104,000; Ebonyi, N90,000; Lagos, N85,000 and Rivers, N85,000.
The Guardian gathered that while the minimum wage has been implemented at the federal level, compliance by some state governments remains far from satisfactory, a development that continues to generate concern among labour leaders.
The National Salaries, Incomes and Wages Commission (NSIWC) said that the payment of the N70,000 national minimum wage to local government workers is inconsistent across Nigeria.
While some states like Lagos fully implement the wage, the NSIWC said about 20 states (including Yobe, Zamfara, Borno, and Kaduna) have yet to extend the new pay scale to local councils, primary school teachers and primary healthcare workers, often citing overstaffing or lack of funds.
Most of the workers in the states receive salaries ranging from N42,000 to N72,000, depending on their grade levels.
With a current N70,000 national minimum wage and the next review due in 2027, organised labour has already signalled that it would seek a N1 million monthly minimum wage, arguing that the value of workers’ earnings has been drastically eroded by soaring prices and the depreciation of the naira.
The emerging demand has effectively drawn the battle lines between the Federal Government, organised labour and employers’ organisations, with analysts warning that the next wage negotiations will go beyond salary increases to become a referendum on the impact of economic reforms, inflation and declining purchasing power on Nigerian workers.
The renewed push comes against the backdrop of data showing that inflation stripped Nigerian workers of about N2.8 trillion in real earnings in 2024, even as nominal salaries increased, while millions of households continue to grapple with one of the worst cost-of-living crises in recent history.
The Central Bank of Nigeria’s (CBN) Gross Domestic Product by Expenditure and Income at 2010 constant purchasers’ prices, released earlier in the year, indicated that the real value of employees’ earnings fell sharply by about N2.79 trillion in 2024 to N25.48 trillion, indicating that workers became poorer as inflation wiped out gains from higher nominal pay.
The figures mean that when adjusted for inflation, take-home pay for Nigerian workers decreased even though workers earned more naira, representing a significant loss in purchasing power during the year.
While the N70,000 minimum wage represented a 133 per cent increase over the previous N30,000 benchmark when it was signed into law in July 2024, much of that gain has been eroded by persistent inflation and rising living costs.
Although headline inflation has moderated to 15.4 per cent as of August from its 2024 peak, labour insisted the slowdown has brought little relief because prices of essential goods remained multiple times above pre-reform levels, leaving workers poorer despite earning higher wages.
The challenge has been compounded by the sharp depreciation of the naira, which has lost over 65 per cent to pro-market reform, following the liberalisation of the foreign exchange market in 2023.
Deputy National President of the NLC, Adewale Adeyanju, told The Guardian that the N1 million figures were proposed based on current realities, stating that labour would come up with its economic blueprint and parameters used in arriving at the figure.
While he kicked against the N100,000 speculations by the Nigeria Governors Forum (NGF), the labour leader argued that the proposal reflects the realities of today’s economy rather than an unrealistic negotiating position.
He insisted that a living wage should enable workers to pay for decent accommodation, nutritious food, transportation, healthcare, education, electricity, communication and other basic needs without falling into poverty.
The Guardian learnt that the labour leaders are already in talks with the Minister of Labour and Employment, Muhammadu Dingyadi, on how the Presidential National Minimum Wage Committee will be set up to begin proper negotiations, comprising the tripartite (government, employers and labour).
President of the Association of Corporate Treasurers of Nigeria (ACTN), Yinka Ogunnubi, said remuneration often lagged behind inflation but could eventually catch up.
The ACTN chief stressed the role of trade unions and collective bargaining in ensuring that companies that raise prices also pass some of the gains to employees.
President, Precision, Electrical and Related Equipment Senior Staff Association (PERESSA), Rufus Olusesan, urged that organised labour negotiate based on data and statistics, so that Nigeria can come up with a wage that is acceptable to the working masses, looking at the current realities.
According to him, any worker earning N250,000 in today’s Nigeria is taking a poverty wage.
The debate is also expected to gather political momentum as Nigeria moves closer to the 2027 general elections. Labour unions are likely to intensify pressure on the government to ensure the next minimum wage reflects current economic realities, while political leaders may face increasing demands to demonstrate that the benefits of ongoing reforms are translating into improved living standards for ordinary Nigerians.
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