Minimum wage
ABUJA, October 29, 2026 — Nigeria Labour Congress (NLC) President Joe Ajaero has warned that setting the national minimum wage at ₦1 million would collapse the Nigerian economy, stressing that the priority must be reducing the cost of living and strengthening the purchasing power of the naira rather than a sharp nominal wage hike.
Ajaero made the remarks during an interview on Channels Television on Thursday, amid ongoing discussions between organised labour and the Federal Government over a review of the current ₦70,000 national minimum wage.
He argued that while the NLC continues to engage the government on wage adjustments, the fundamental challenge facing workers is the high cost of living and the eroded value of the currency. “N1,000,000 minimum wage will collapse the Nigerian economy,” Ajaero stated.
According to the labour leader, the government must first tackle the underlying drivers of inflation and the weak purchasing power of the naira. Without these structural measures, he suggested, an excessively high minimum wage figure would be unsustainable for the economy and could trigger broader instability.
Ajaero’s comments come against the backdrop of persistent economic pressures on Nigerian workers. The current minimum wage of ₦70,000, signed into law in July 2024, has been widely criticised by labour as inadequate following successive increases in fuel prices, food costs and transportation expenses. The Federal Government recently approved a ₦70,000 transport allowance for workers in a bid to ease the burden of rising fuel prices.
The NLC has in recent weeks rejected the Federal Government’s position that negotiations for a new minimum wage should wait until June 2027. The union has insisted that talks should begin immediately, citing the rapid erosion of real wages by inflation and the declining value of the naira. Labour has also demanded measures such as lower petrol prices and tax relief to provide immediate relief to workers.
In previous statements, Ajaero has emphasised that wage increases alone cannot deliver lasting improvements in living standards if inflation continues unchecked. He has repeatedly called for policies that stabilise the currency and address the cost of essential goods, arguing that nominal pay rises quickly lose value under current economic conditions.
The labour movement’s position highlights the tension between workers’ demands for higher take-home pay and concerns about the fiscal capacity of government and the private sector to sustain large wage increases without triggering further inflationary pressures or economic strain.
As of Thursday, neither the Federal Government nor the NLC had announced a final position on the quantum of any new minimum wage. Negotiations remain at an early stage, with both sides expected to continue engagements in the coming weeks.
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