Nigeria’s N30,000 ($20) minimum wage is the lowest among the top ten African economies, a recent report by SBM Intelligence reveals.
The report, which compared the monthly salaries of leaders in African top ten economies with their countries’ minimum wage, showed that Nigeria’s president earns N8,625,000 monthly ($5,750 converted at N1,500/$), which is 287.5 times higher than the country’s minimum wage.
Nigeria, the fourth largest economy in Africa, has the lowest minimum wage among countries in the top ten.
Morocco, the sixth largest economy, has the highest monthly minimum wage of $285.61, equivalent to N428,415. This means that Morocco’s monthly minimum wage is 14 times higher than Nigeria’s minimum wage.
Here’s the full list of the minimum wage in the top ten African economies and their leaders’ monthly salaries.
Low income worsens economic hardships for Nigerian workers
Nigeria is currently contending with a record high inflation rate at 34.19 per cent in June 2024 due to the two-time devaluation of the naira and removal of petrol subsidy.
The inflationary trends have raised Nigeria’s interest rates by a combined 750 basis points from 18.75 per cent last July to 26.25 per cent in May as the central bank continues to deploy monetary tools to restore the battered economy.
Labour unions have consistently lamented that the existing minimum wage of N30,000 is insufficient for workers’ well-being, noting that not all governors are adhering to the current wage, which expired in April 2024.
Despite the harsh economic conditions, the Nigerian government has failed to increase the national minimum wage, prompting the workers to embark on an indefinite strike last month.
The industrial action, which grounded activities in the country, was suspended on the second day following President Bola Tinubu’s pledge to meet the workers’ demands.
A meeting between labour leaders and the president last week ended in deadlock as both parties failed to reach a compromise on the new minimum wage.
According to reports, the labour is insisting on N250,000 monthly minimum wage, while the government is proposing between N62,000 and N65,000.
NLC threatens 30-day nationwide strike over plan to decentralise minimum wage
The Nigeria Labour Congress (NLC) has threatened to embark on a nationwide strike lasting one month if the National Assembly proceeds with plans to decentralise the national minimum wage.
NLC President Joe Ajaero conveyed the union’s resolute stance during the 67th Nigeria Employers’ Consultative Association Annual General Meeting in Lagos on Tuesday.
Ajaero expressed concern over a joint committee of the Senate, House of Representatives, and Judiciary considering transferring the regulation of minimum wage from the exclusive legislative list to the concurrent list.
This move, he argued, would grant state governors the authority to determine wage levels, effectively eliminating a national minimum wage.
Ajaero emphasised that such a development would be unacceptable, likening it to imposing “slave wages” on Nigerian workers.
He asserted that the Constitution guarantees equal pay for equal work, regardless of geographic location. International labour standards, as outlined by the International Labour Organisation, also support a national minimum wage.
The NLC president dismissed claims by some governors that they cannot afford a N60,000 minimum wage, asserting that these governors are mismanaging resources.
“As we are here, a Joint Committee of the Senate, the House of Representatives, and the Judiciary are meeting. They have decided to remove section 34 from the Exclusive legislative list to the concurrent list so that the state governors can determine what to pay you and so that there will be no minimum wage again. You cannot decide what you should earn.
“The very moment the House of Representatives and the Senate come up with such a law that will not benefit Nigerian workers, they will be their drivers and gatemen, and there will be no movement for one month. We cannot accept any situation where the governors and the National Assembly members will foist a slave wage on workers and force poverty on the citizens. Organised Labour will not accept it,” Ajaero said.
Item 34 of the Second Schedule of the 1999 Constitution of the Federal Republic of Nigeria gives the National Assembly powers to “prescribe a national minimum wage for the Federation or any part thereof.” The constitution listed the national minimum wage among 68 items on the federal exclusive list.
Historically, the federal government has always determined the minimum wage which must be followed by the states and private sector.
Recently, the Southern Governors’ Forum released the communiqué of its meeting held in Abeokuta, Ogun State, with the governors asking that each state should negotiate minimum wage with its workforce. This is in contrast with the constitution which states that only the federal government can determine minimum wage that must be obeyed nationally.
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