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Labour

Why Nigerian Workers’ Struggle Goes Beyond Minimum Wage: A Call for Structural Reforms.

AdminBy AdminOctober 21, 2024Updated:October 21, 2024No Comments3 Mins Read
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By unknown author.


The plight of the Nigerian worker is not simply about a minimum wage increase. Even if the government raises the wage to ₦100,000 monthly, the economic and social conditions in the country make it nearly impossible for this to offer meaningful relief. The nation has deteriorated to a point where even with such an income, one would need prayers to survive the harsh realities of life in Nigeria.

The Nigerian worker faces overwhelming challenges: no social insurance, no government-subsidized healthcare, no affordable housing, unreliable electricity, lack of public transport, no potable water in many places and no personal security. On top of this, the relentless pressure from inflation, landlords, and school fees continues to render salary increases insignificant.

Consider China, where the minimum wage is $358. However, what sustains the Chinese worker isn’t just their salary but the robust social infrastructure. Free healthcare, housing, education, affordable public transport, and constant electricity are all provided. China has largely eradicated hunger, so the Chinese worker lives comfortably, despite earning less than their Nigerian counterpart might, because their basic needs are not tied solely to their income.

In Germany, the minimum wage is a substantial €1,557. Though the income tax rate can range from 24% to 45%, German workers are not concerned by the high taxes. Why? The government provides healthcare, free education, child support allowances, affordable housing, and reliable public transport. Electricity and clean water are also guaranteed.

The root problem for Nigerian workers is the lack of such essential social support systems. They live in constant fear of job loss, knowing that even after completing their years of service, the pension system is unreliable. At age 60, when many retire, the thought of starting a business is daunting.

The labor unions, particularly the Nigeria Labour Congress (NLC), have failed to tackle these fundamental issues. Instead of solely focusing on wage increases, they should be advocating for government reforms that address these social deficiencies. The NLC should push for the elimination of salary disparities across government agencies, insist on improved public education funding, and demand affordable electricity. With consistent power, many workers could venture into business and escape the salary trap.

The unions should also press the government to stop the exploitative Band A electricity tariff, reduce interest rates, and lower VAT for start-ups. After all, out of China’s 18 million millionaires, none rely on salaries—they’ve built their wealth by producing goods and services. Salary dependency leads to a vicious cycle of poverty. Only by fostering creativity, productivity, and entrepreneurship can workers break free.

The recently proposed ₦70,000 minimum wage and ₦35,000 palliative measures for six months will achieve little. Inflation, already at 300% for some essential items, continues to erode purchasing power. Without addressing the underlying social and economic challenges, the future remains bleak for Nigerian workers.

If we want to make life better, we need more than a wage increase—we need systemic change.
Edited by Dada Ahmed.

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