During his New Year speech, President Bola Tinubu said the Federal Government would implement a new national living wage for workers in 2024.
“We will work diligently to make sure every Nigerian feels the impact of their government.
“The economic aspirations and the material well-being of the poor, the most vulnerable, and the working people shall not be neglected.
“In this spirit, we will implement a new national living wage for our industrious workers this New Year.
“It is not only good economics to do this; it is also a morally and politically correct thing to do.
What is a living wage?
It lets everyone live decently, not just barely survive.
Minimum vs Living
The minimum wage is the minimum employers must pay you by law. It does not necessarily have to cover daily living costs.
While a living wage is what you need to cover basic stuff like food, housing, and clothes. Enough to live decently and not worry about making ends meet.
Both wages grow over time and are affected by factors like inflation. While one wage might grow slowly enough to keep up with rising prices, the other (Living) aims to grow faster, keeping up with how much it costs to live a decent life.
Deciding what a Living wage should be can be tricky because what is enough for one person might not be enough for another, depending on the number of dependents or where they live. For example, the cost of living in Lagos differs from that for someone living in Damaturu with the same number of dependents.
Would a living wage end poverty in Nigeria?
At least 71 million Nigerians are currently living in extreme poverty, according to the World Poverty Clock 2023.
The poorest people do not have paid jobs, so it helps those who rely on paid work (their own or someone else’s) for an income.
Therefore, these wages (living) intend not to eradicate all poverty but to end poverty among the working poor.
According to the Nigerian Bureau of Statistics, most Nigerians are self-employed. At the same time, a much smaller proportion holds salary jobs, so hopefully, the government has put this knowledge into planning the 2024 national living wage.
