Nigeria’s recently implemented minimum wage increase is expected to directly benefit around 5.3 million workers across the country, according to a report by the National Bureau of Statistics (NBS).
The new minimum wage, which went into effect in August 2023, raised the lowest legal pay from 30,000 naira to 40,000 naira per month. However, the impact of this change will not be felt equally across Nigeria’s workforce.
Out of Nigeria’s total population of 229 million, about 76 million individuals (33.2%) are considered part of the active workforce. But not all of these workers will see their paychecks increase as a result of the minimum wage hike.
The NBS analysis found that only around 5.3 million workers, or 23% of the total workforce, are expected to directly benefit from the new minimum wage. This includes:
– 1.2 million (23%) federal government employees
– 0.3 million (6%) workers at government-owned enterprises
– 1.3 million (25%) state and local government workers
– 0.7 million (13%) employees at private sector organizations
– 1.8 million (34%) workers in the formal private sector
“The new minimum wage is an important step forward, but its impact will be limited to less than a quarter of Nigeria’s workforce,” said NBS Chief Statistician Amina Ahmed. “Many Nigerians, especially those in the informal sector, will not see their incomes rise as a result of this policy change.”
The NBS report highlights the need for Nigeria to continue pursuing comprehensive economic reforms to expand formal employment and ensure more equitable wage growth across all segments of the population.