In a landmark decision that has reshaped Nigeria’s labor landscape, President Bola Ahmed Tinubu approved a new national minimum wage of ₦70,000 per month on July 18, 2024, a significant leap from the previous ₦30,000 set in 2019. This approval, formalized with the signing of the National Minimum Wage (Amendment) Act on July 29, 2024, in Abuja, followed months of intense negotiations, strikes, and public outcry. The move was a direct response to the soaring cost-of-living crisis that has gripped the nation, driven by bold economic reforms and unrelenting inflation. The new wage, effective retroactively from May 1, 2024, represents a 133% increase and includes a shortened review cycle of three years instead of five, aiming to keep pace with economic realities.
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President Bola Ahmed Tinubu
This reform is more than a numerical adjustment; it is a lifeline for millions of Nigerian workers struggling to survive in an economy where the cost of basic necessities like food, transportation, and housing has outstripped earnings. With inflation hitting unprecedented levels and poverty rates climbing, the wage hike offers hope to low-income families, particularly in the public sector and parts of the private sector. However, the journey to this approval was fraught with challenges, reflecting deep-seated issues in Nigeria’s labor market, governance, and economic structure. This article explores the context, implications, and challenges of this historic decision, weaving together the voices of workers, policymakers, and ordinary Nigerians to paint a comprehensive picture of a nation at a crossroads.
The Economic Backdrop: A Nation in Crisis
When President Tinubu took office in May 2023, he inherited an economy teetering on the edge. Decades of reliance on oil revenues, coupled with mismanagement and a bloated fuel subsidy program, had left Nigeria’s finances in disarray. One of his first acts was to abolish the fuel subsidy, a policy that had drained billions annually from the treasury. Overnight, petrol prices tripled, jumping from ₦185 to over ₦600 per liter. Simultaneously, the unification of the exchange rate led to a sharp depreciation of the naira, which plummeted from ₦450 to over ₦1,600 against the dollar by mid-2024. These reforms, while aimed at long-term fiscal stability, unleashed immediate hardship on Nigerians.
The ripple effects were profound. Transportation costs soared, pushing up the price of goods and services. Food inflation became a national emergency, with staples like rice, beans, and yam becoming unaffordable for many households. The cost of living for a family of four far exceeded the old minimum wage, leaving workers in both formal and informal sectors struggling to make ends meet. The informal economy, which employs over 90% of Nigeria’s workforce, was particularly hard-hit, as small traders, artisans, and laborers lacked the bargaining power to demand fair pay. Against this backdrop, labor unions, led by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), demanded urgent action to address the erosion of workers’ purchasing power.
The labor movement’s response was swift and uncompromising. In early 2024, unions issued an ultimatum, demanding a new minimum wage to reflect the economic realities. Initial proposals ranged as high as ₦494,000, later moderated to ₦250,000, as unions argued that the old wage could barely cover a week’s worth of groceries. When the government failed to meet these demands, labor launched a nationwide strike in May 2024, shutting down schools, hospitals, airports, and other critical services. The strike, one of the most disruptive in recent history, cost the economy billions in lost productivity and exposed the fragility of Nigeria’s social and economic fabric.
The Negotiation Process: A Test of Leadership
The road to the ₦70,000 minimum wage was paved with tension, compromise, and high-stakes negotiations. In January 2024, President Tinubu established the Tripartite Committee on Minimum Wage, comprising representatives from the government, labor unions, and the private sector. The committee’s mandate was to recommend a new wage that balanced workers’ needs with economic realities. However, early talks were contentious, with the government proposing ₦62,000—a figure unions dismissed as inadequate given the skyrocketing cost of living.
As negotiations faltered, labor escalated its actions, with threats of further strikes looming large. The involvement of powerful unions, including those representing petroleum workers, raised fears of fuel shortages that could cripple the economy further. President Tinubu’s personal intervention proved to be the turning point. In July 2024, he convened two critical meetings within a week with labor leaders at the Presidential Villa in Abuja. These discussions, marked by intense bargaining, culminated in the agreement on ₦70,000, a figure that labor accepted with cautious optimism. Union leaders praised the president’s engagement but emphasized that the wage, while a step forward, fell short of fully addressing the economic hardships faced by workers.
The agreement included several key provisions. The wage was made retroactive to May 1, 2024, ensuring that workers would receive arrears for the intervening months. Additionally, the government committed to reviewing the wage every three years, a significant shift from the previous five-year cycle, which had allowed inflation to erode gains. To support implementation, Tinubu pledged federal assistance to states and private employers, including clearing salary backlogs for university workers and other public sector employees.
A Historical Perspective: The Evolution of Nigeria’s Minimum Wage
The struggle for a fair minimum wage is deeply rooted in Nigeria’s history, reflecting the nation’s complex journey from colonial rule to modern democracy. The first formal wage policies emerged in the 1940s under British colonial administration, setting meager rates for urban workers. Post-independence, Nigeria’s labor movement gained momentum, but military regimes often suppressed demands for better pay. A significant milestone came in 1974 with the Udoji Commission, which recommended a minimum wage of ₦120, though implementation was hampered by economic volatility tied to the oil boom.
The return to democracy in 1999 brought renewed focus on workers’ rights. In 2000, the minimum wage was set at ₦5,500, rising to ₦7,500 by 2004. In 2011, a landmark increase to ₦18,000 was achieved, driven by labor’s insistence on addressing inflation and rising costs. The 2019 hike to ₦30,000, signed into law by former President Muhammadu Buhari, was a significant victory, but its value was quickly eroded by inflation, which reached 200% cumulatively by 2024. The ₦70,000 wage approved by Tinubu builds on this legacy, marking the largest percentage increase in recent history. However, its real impact remains to be seen in an economy where inflation continues to outpace wage growth.
The Signing Ceremony: A Moment of Symbolism
On July 29, 2024, President Tinubu signed the National Minimum Wage (Amendment) Act into law at the State House in Abuja, in a ceremony attended by labor leaders, government officials, and legislators. The event was steeped in symbolism, with Tinubu framing the wage hike as a fulfillment of his promise to prioritize workers’ welfare. The National Assembly played a crucial role, fast-tracking the bill through both chambers to ensure swift implementation. Senate and House leaders hailed the legislation as a pro-people measure, reflecting the government’s commitment to easing economic burdens.
The new law includes several notable features. It mandates employers to pay arrears from May 2024, ensuring no worker is shortchanged. The wage applies to all workers under the Labour Act, including domestic and manual laborers, though exemptions exist for seasonal workers and the armed forces. Penalties for non-compliance are stringent, with fines up to ₦50,000 and additional daily penalties for ongoing violations. Employers are also required to provide transport allowances or free transport for workers traveling significant distances to work, a nod to the transportation crisis triggered by fuel subsidy removal.
Economic Implications: A Double-Edged Sword
The ₦70,000 minimum wage is a bold intervention in Nigeria’s $477 billion economy, which is projected to grow modestly in 2024. For workers, the increase translates to an additional ₦480,000 annually, offering a buffer against rising costs. This boost in disposable income could stimulate consumption, benefiting small and medium enterprises in sectors like retail, agriculture, and services, which employ the majority of Nigerians. Economists estimate that the wage hike could lift millions out of poverty, reducing the national poverty rate, which has climbed alarmingly in recent years.
However, the reform is not without risks. Businesses, particularly small enterprises, face increased labor costs that could strain their operations. Industry leaders have warned that without government support, such as tax breaks or subsidies, some firms may resort to layoffs or closures, exacerbating Nigeria’s unemployment rate, which stands at over 33%. The manufacturing sector, already grappling with high energy costs and foreign exchange shortages, is particularly vulnerable. Inflation remains a looming threat, as higher wages could drive up prices if not accompanied by productivity gains. Nigeria’s output per worker lags behind regional peers, making it critical to pair the wage hike with investments in skills training and infrastructure.
At the state level, fiscal constraints pose a significant challenge. While wealthier states like Lagos have pledged to pay above the minimum—offering ₦85,000—poorer states struggle to comply without federal assistance. The Nigerian Governors’ Forum has highlighted the financial strain on states with limited revenue, raising concerns about uneven implementation across the country. The federal government’s promise of support will be crucial to ensuring that the wage is uniformly adopted.
Voices from the Ground: Hope, Frustration, and Skepticism
The announcement of the ₦70,000 wage sparked a range of reactions among Nigerians. For many workers, it was a moment of relief. Aisha Bello, a trader in Lagos’ bustling Balogun Market, expressed cautious optimism: “This money will buy more rice and garri for my children, but transport costs are still eating everything.” In Abuja, civil servant Musa Ibrahim voiced frustration over delays in implementation: “The government promised arrears, but my pocket is still empty. We need action, not words.”
Social media platforms have been abuzz with discussions, reflecting a mix of hope and skepticism. Some Nigerians celebrated the wage hike as a rare victory for workers, while others criticized it as insufficient in the face of inflation. Posts on platforms like X highlight ongoing challenges, with users lamenting that some employers, particularly in the private sector, continue to pay far below the new minimum. One viral post called out a fuel station paying attendants just ₦10,000, sparking outrage and demands for stronger enforcement.
Labor unions, while welcoming the increase, remain vigilant. Leaders have emphasized that the ₦70,000 is a compromise, not a panacea, and have vowed to monitor implementation closely. The private sector, particularly small businesses, has called for government palliatives to offset the increased wage burden. Civil society organizations have urged greater transparency in public spending to ensure that funds allocated for the wage are not mismanaged.
Implementation Hurdles: From Promise to Reality
As of September 2025, the implementation of the ₦70,000 wage remains uneven. Federal workers have begun receiving the new salary and arrears, but many states lag behind, with some yet to adopt the policy. Health workers, including medical house officers, have protested unpaid wages, highlighting gaps in enforcement. The National Youth Service Corps (NYSC) has adjusted its allowance to ₦77,000, reflecting the government’s commitment to younger workers, but broader compliance remains a challenge.
Enforcement is a critical concern. The National Salaries, Incomes and Wages Commission is tasked with monitoring compliance, but its capacity is limited. Reports of private employers flouting the law—paying as little as ₦10,000 in some cases—have fueled calls for stricter oversight. The government’s ability to enforce penalties and ensure timely payment of arrears will determine the success of this reform.
Broader Reforms: Contextualizing the Wage Hike
The minimum wage increase is part of a broader reform agenda under President Tinubu. In 2024, he signed several transformative bills, including the Student Loans Act to expand education access, a judicial salaries bill to boost judges’ pay by 300%, and amendments to the Electricity Act to improve power supply efficiency. The Crude-for-Naira initiative, aimed at boosting local refining, complements efforts to stabilize fuel prices. The Supreme Court’s ruling on local government autonomy in July 2024 further supports fiscal decentralization, potentially enabling grassroots development.
The restart of the Port Harcourt Refinery in November 2024 is another step toward reducing reliance on imported fuel, which could ease inflationary pressures. However, these reforms must be sustained to maximize the wage hike’s impact. Without diversification—oil still accounts for 90% of export earnings—Nigeria remains vulnerable to global price shocks.
Global Comparisons and Lessons for Nigeria
Nigeria’s ₦70,000 wage, equivalent to about $44 monthly at 2024 exchange rates, is modest compared to regional peers. South Africa’s minimum wage exceeds $1,500, while Ghana’s is significantly lower but still outpaces Nigeria in purchasing power. Nigeria’s large informal economy complicates comparisons, as most workers lack formal contracts or union protection. Lessons from countries like Brazil, which paired wage hikes with skills training in the 2010s, suggest that Nigeria must invest in human capital to sustain this reform without fueling unemployment.
The Road Ahead: Toward Sustainable Progress
Looking ahead, the three-year review cycle set for 2027 offers a chance to adjust the wage in line with economic conditions. Economists project that inflation may moderate to 25% if reforms like local refining and agricultural investment take hold. However, without addressing structural issues—such as Nigeria’s overreliance on oil, inadequate power supply, and weak anti-corruption measures—the wage hike risks being a temporary fix.
Tinubu’s administration has introduced palliatives, including cash transfers and food distribution, but these must evolve into long-term solutions like subsidies for agriculture and loans for small businesses. The voices of ordinary Nigerians, from market traders to civil servants, underscore the urgency of these measures. As one X user poignantly noted, “A new wage is good, but it’s nothing if we can’t eat.”
Conclusion: A Step Forward, but the Journey Continues
The approval of the ₦70,000 minimum wage by President Bola Ahmed Tinubu is a historic achievement, offering relief to millions of workers battered by economic hardship. It reflects the power of collective action, as labor unions and ordinary Nigerians pushed for change in the face of adversity. Yet, the reform’s success hinges on implementation, enforcement, and complementary policies to address inflation, unemployment, and inequality.
For now, the wage hike stands as a testament to Nigeria’s resilience and the government’s willingness to listen. As the nation navigates its economic challenges, the ₦70,000 wage is a beacon of hope—but also a reminder that true progress requires sustained effort, transparency, and a commitment to lifting all Nigerians out of poverty. The voices of workers, amplified through protests and negotiations, have secured this victory, but the fight for a fair and prosperous Nigeria continues.
