Nigeria Proposes Substantial Minimum Wage Hike to 105,000 Naira Per Month

Headline: Nigeria Proposes Substantial Minimum In a move aimed at addressing the rising cost of living in the country, the Nigerian government has proposed a significant increase in the national minimum wage. According to sources, the new minimum wage is set to be raised to 105,000 Naira per month, which is equivalent to approximately $220 USD.

google.com, pub-3822032484198406, DIRECT, f08c47fec0942fa0

 

This proposed change represents over a 50% jump from the current minimum wage of 30,000 Naira per month. The last time the minimum wage was adjusted was in 2019, when it was raised from 18,000 Naira to the current 30,000 Naira level.

 

The decision to consider this substantial minimum wage hike comes amid growing concerns over the eroding purchasing power of Nigerian workers due to high inflation rates. Annual inflation in Nigeria reached 21.91% as of February 2023, putting significant strain on household budgets.

 

“This proposed increase is a recognition by the government that the current minimum wage is no longer sufficient for workers to meet their basic needs,” said economic analyst Sarah Aminu. “It demonstrates an effort to provide some relief to the country’s lowest-paid employees.”

 

However, the potential wage hike has also raised questions about its impact on businesses, especially small and medium-sized enterprises (SMEs) that may struggle to absorb the increased labor costs. There are also concerns about the potential for job losses if employers are unable to maintain current staffing levels.

 

“While the intention behind this policy is noble, the government must carefully consider the broader economic implications and work closely with the private sector to ensure a smooth implementation,” cautioned Chidi Nwaogu, the president of the Lagos Chamber of Commerce and Industry.

 

The proposal is currently under review by the National Salaries, Incomes and Wages Commission, which is responsible for setting and adjusting the national minimum wage. If approved, the new minimum wage could come into effect as early as the third quarter of 2023, providing a much-needed boost to the purchasing power of Nigeria’s lowest-paid workers.

Leave a Reply

Your email address will not be published. Required fields are marked *