Nigerians facing daily economic hardships have voiced strong preferences for government actions that cut the prices of essentials rather than just raising the national minimum wage. Residents interviewed in various locations highlighted how the current N70,000 monthly wage falls short against soaring costs, but they argued that wage increases alone could trigger more inflation without addressing root issues like fuel subsidies and transportation expenses.
James, a resident who shared his views on the matter, emphasised the need to tackle underlying problems.
“In the issue of minimum wage, it is better they leave it the way it is but reduce the cost of things for example fuel, subsidy is the problem of the country if they can bring subsidy back everything will be okay,” he said.
This sentiment reflects widespread frustration with the removal of fuel subsidies, which has driven up transport and food prices across the country.
Another resident echoed similar concerns, focusing on market affordability. “They should reduce the cost of things in the market rather than increasing the minimum wage so that no matter how small your salary is, you will be able to buy things in the market,” he stated.
Such reactions underline a common belief that direct interventions in pricing would provide more immediate relief for low-income families struggling to stretch their earnings.
Michael John, another individual who weighed in, dismissed the idea of wage hikes as ineffective in the long term.
“To me the increase of minimum wage does not make sense to me, because if the minimum wage increase cost of things will rise the issue of Nigeria is transportation the government should reduce vat on goods,” he explained.
His point about value-added tax (VAT) on goods aligns with broader economic data showing how taxes and logistics costs inflate everyday expenses.
These public responses come against the backdrop of organised labour’s push for a higher national minimum wage, as the N70,000 set in 2024 remains unchanged into 2025, according to data from the National Salaries, Incomes and Wages Commission. The Nigeria Labour Congress (NLC) has insisted that this amount is inadequate given the economic realities. Benson Upah, the Acting General Secretary of the NLC, stated in an interview that workers are under severe strain.
“The truth is that N70,000 minimum wage is not sustainable under the current economic situation. Workers are under immense pressure, and unless the government responds quickly, the crisis of survival will only worsen,” he said.
Upah further noted that while the NLC prefers dialogue, industrial action could follow if the Federal Government does not act.
Statistics support these claims of unsustainability. Nigeria’s headline inflation rate stood at 21.88 percent in July 2025, down slightly from 22.22 per cent in June, as reported by the National Bureau of Statistics. Food inflation, a key driver, reached 22.74 percent in July, marking a five-month high.
The average cost of a basic food basket illustrates the gap: a 50kg bag of rice costs between N110,000 and N120,000, while a basket of tomatoes goes for N18,000, according to market surveys in early 2025. For a family of four, monthly living expenses excluding rent average 2,289,209 naira, far exceeding the minimum wage even for multiple earners.
Shehu Mohammed, President of the Association of Senior Civil Servants of Nigeria (ASCSN), praised states that have gone beyond the national benchmark, calling them examples for others.
“Right from the beginning, during the negotiation, our demand was for a living wage, and we submitted N250,000 as a reasonable benchmark,” he said. Mohammed added: “Let’s be realistic. Even if you pay electricity bills out of N70,000, what remains cannot sustain a family for 10 days.” He called for complementary measures like affordable housing, healthcare, and subsidised transportation to ease living costs.
In Ogun State, labour leaders are gearing up for negotiations on a new wage floor. Indications show that organised labour there may push for N104,000 for civil servants. Hameed Benco, Chairman of the NLC in Ogun, expressed confidence in the state’s ability to afford it, citing increased revenues. “With the increase in huge allocations received from the Federal Account Allocation Committee (FAAC) by the states, he was certain that the Dapo Abiodun-led administration could pay the new wage when demanded,” Benco stated during an interview in Abeokuta.
Akeem Lasisi, Chairman of the Trade Union Congress (TUC) in Ogun, confirmed ongoing plans.
“Plans were underway by the organised labour to meet with the governor on a new minimum, stressing that the Ogun State government could also approve N104,000 as the new minimum wage, as was done in Imo State,” he said. Lasisi commended Imo State Governor Hope Uzodimma for setting a precedent with the N104,000 approval, describing it as a foundation for other governors.The Federation Account Allocation Committee (FAAC) disbursed a total of ₦2.94 trillion to the three tiers of government in June 2025.
This disbursement reflects a positive shift in the allocation of resources to states, with the North Central region receiving a significant ₦799.05 billion between January and June. This boost in allocation aligns with the national trend of rising FAAC receipts, fueled by higher oil revenues and favorable currency adjustments. As a result, states’ FAAC receipts accounted for over 70% of their total revenues during the first half of 2025, with many states utilizing these funds to implement economic improvements, including wage increases.
By mid-2025, at least 14 states had approved minimum wages above the federal benchmark of ₦70,000, marking an effort to adjust wage policies in response to economic conditions. States such as Lagos and Rivers set their minimum wages at ₦85,000, with Lagos planning to increase this to ₦100,000 by 2026. Additionally, other states, including Bayelsa, Niger, Enugu, and Akwa Ibom, had raised their minimum wage to ₦80,000. However, it is important to note that 20 out of 36 states had yet to fully implement the national minimum wage by May 2025, indicating a disparity in the adoption of wage reforms across the country.
The rising FAAC receipts and wage adjustments signal a growing fiscal capacity for states to implement more robust economic policies. However, the uneven progress across states highlights the challenges in achieving nationwide parity in terms of wage and economic development.
