Summary
The Federal Government of Nigeria (FGN) has approved a new minimum wage threshold for Nigerian workers. This new development was confirmed in the statement from the Office of the Minister of Information announced on Thursday, July 18, 2024.
Background
The Nigerian national minimum wage establishes the baseline earning threshold for workers in both the public and private sectors. As a statutory requirement, it must be adhered to by all relevant stakeholders and is reviewed periodically to reflect current economic conditions. The minimum wage is typically reviewed every five (5) years.
The previous minimum wage in Nigeria, set at Thirty Thousand Naira (₦30,000) ($18), was enacted under the Minimum Wage Act of 2019, with its provisions intended to last until April 30, 2024.
In January 2024, the FGN established a tripartite committee to review the minimum wage. Subsequently, in May 2024, the FGN proposed an increase to Sixty Thousand Naira (₦60,000) ($37). However, this proposal was met with much resistance from relevant stakeholders particularly the labor organizations, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), which embarked on nationwide industrial action in June 2024 demanding for a more substantial increase.
Following the series of ensuing meetings and negotiations between the relevant stakeholders, the FGN approved Seventy Thousand Naira (₦70,000) ($43) as the new minimum wage for Nigerian workers on Thursday, July 18, 2024, and proposed to renew the national minimum wage triennially. The Executive Bill for this wage adjustment will be presented to the National Assembly by Tuesday, July 23, 2024, and the National Assembly has pledged to prioritize the approval of this bill upon its submission.
The National Assembly has also assured that upon approval, the law will contain measures to compel compliance by all states and local governments
Need-to-know Information.
a. The proposed National Minimum Wage, as approved by the Federal Government, is Seventy Thousand Naira (₦70,000.00) ($43) (the "Proposed National Minimum Wage").
b. Upon legislative approval by the National Assembly, the Proposed National Minimum Wage will become the applicable statutory minimum wage for workers across all sectors in Nigeria for the next three (3) years.
c. Following the enactment of the new Act, all employers of labor are required to comply with the new threshold and amend their remuneration arrangements accordingly.
d. The Proposed National Minimum Wage, once officially approved, will be reviewed after three (3) years, with the next anticipated review being in 2027.
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