Abuja, Nigeria
As Nigerian workers marked this year’s Workers’ Day on May 1, the President of the Trade Union Congress (TUC), Festus Osifo, said increasing the minimum wage alone will not improve workers’ lives unless the value of the naira is also strengthened. He made this known during an appearance on Channels Television’s The Morning Brief on Friday.Osifo explained that conversations around raising the minimum wage must go hand in hand with efforts to stabilise and properly value the naira. According to him, treating both issues separately will not deliver real economic relief for Nigerian workers.
He stressed that improving workers’ welfare requires a “double-edged approach,” where wage increases and currency stability are addressed at the same time.
“You can come today and say that the Nigerian minimum wage is ₦1 million, but what is actually the value of that ₦1 million? What can it purchase?” Osifo said.
The TUC President argued that without fixing the underlying economic fundamentals, any increase in wages may fail to translate into real purchasing power. He noted that simply raising salaries without addressing inflation and currency weakness could leave workers no better off.
Osifo maintained that both policies are interconnected and must move together, not one after the other.
“If you address both of them at the same time, it has a direct impact on the purchasing power of the naira,” he added.
Nigeria’s current minimum wage stands at ₦70,000, following its approval by President Bola Tinubu in 2024 after prolonged negotiations with labour unions.
However, recent global economic pressures — including rising oil prices linked to geopolitical tensions such as the Iran conflict — have worsened inflation and weakened the naira. According to Osifo, this has further reduced the real value of workers’ earnings, despite Nigeria being an oil-producing country.
He pointed out that instead of easing hardship, higher global oil prices have contributed to increased living costs for ordinary Nigerians.
Osifo called for a more comprehensive economic strategy that addresses both income levels and currency strength, saying only a balanced approach can deliver meaningful relief to Nigerian workers facing rising costs of living.