New minimum wage must reflect inflation, exchange rate – Ajaero insists

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Read History Go to My Account Log Out Enhanced by Google News New minimum wage must reflect inflation, exchange rate – Ajaero insists …As Okunnu urges FG to balance reforms with citizens’ welfare Joe Ajaero, president of the Nigeria Labour Congress (NLC), has

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Joe Ajaero, president of the Nigeria Labour Congress (NLC), has said the next national minimum wage review must reflect inflation, the exchange rate and the rising cost of living to protect workers’ purchasing power.

Ajaero said the next wage negotiation must be based on the actual cost of essential goods and services, including food, housing and transportation, warning that arbitrary wage increases could quickly lose their value amid prevailing economic pressures. He spoke at the 2026 annual conference of the Labour Writers Association of Nigeria (LAWAN), held recently in Lagos.

According to him, preparations for the next minimum wage negotiation should begin ahead of the April 2027 review, following the amendment of the National Minimum Wage Act in 2024, which reduced the wage review cycle from five years to three years.

He said labour must establish what workers genuinely require to meet their basic needs rather than negotiate figures without considering their purchasing power.

“It should not simply be a matter of proposing N50,000 or N100,000 without establishing what those amounts can actually purchase,” he said.

Ajaero identified inflation, the naira’s exchange value and the cost of essential services as critical considerations in determining the next wage, stressing that a meaningful review must deliver lasting improvements in workers’ living standards.

He also questioned the government’s failure to fully implement transportation commitments made during the previous minimum wage negotiations, particularly the provision of compressed natural gas (CNG)-powered and electric vehicles to ease commuting costs.

He expressed concern over the effectiveness of CNG buses distributed to organised labour, insisting that temporary financial relief could not substitute for sustainable interventions to reduce workers’ economic burden.

Meanwhile, Rufus Olusesan, National President of the Precision, Electrical and Related Equipment Senior Staff Association (PERESSA), called for greater transparency and accountability in the management of Nigeria’s oil revenue.

Olusesan alleged that the Federal Government generated more than N5.1 trillion in additional revenue from rising crude oil prices between March and April, when prices climbed from the budget benchmark of $68 per barrel to between $109 and $110.

He questioned how the additional revenue had been utilised, urging Nigerians to demand accountability in the management of public resources.

Also speaking, Ganiyu Okunnu, a lecturer at the Lagos State University (LASU), warned that public sector reforms driven primarily by cost-cutting could undermine workers’ welfare, weaken government institutions and compromise service delivery.

Okunnu said reforms aimed at improving efficiency, transparency and fiscal sustainability must be balanced with social justice, fair remuneration and the protection of workers’ rights.

He noted that although governments were increasingly adopting digital technologies, outsourcing and private-sector management practices to improve public administration, poorly managed reforms could trigger job losses, casualisation, wage stagnation and declining employment security.

According to him, mass retrenchment, voluntary retirement schemes, short-term employment contracts and wage restrictions amid rising inflation remain major threats to public sector workers.

He argued that efficiency and workers’ rights should not be treated as competing objectives, warning that an insecure and poorly motivated workforce could weaken institutional capacity and undermine the quality of public services.

Citing the International Labour Organisation’s Decent Work principles, Okunnu said job security, fair wages, safe working conditions and social dialogue should underpin public sector restructuring.

He advocated greater consultation with trade unions before implementing reforms, alongside investment in retraining and skills development to prepare public servants for digital governance rather than resorting to immediate workforce reductions.

He also called for fair severance packages, pension guarantees and support for alternative livelihoods for workers affected by retirement or workforce adjustment programmes.

Okunnu urged journalists to move beyond official government announcements and investigate the real impact of reforms on workers and citizens.

He called for closer scrutiny of government budgets, policy documents and workforce statistics, as well as independent verification through trade unions, frontline workers and service users.

He further urged journalists to assess reforms against domestic labour laws and relevant ILO conventions, particularly Conventions 87 and 98, which protect freedom of association and the right to collective bargaining.

He stressed that journalists must establish whether savings from workforce reductions are being reinvested in development projects and improved public services or absorbed by administrative expenditure.