N70,000 Minimum Wage Losing Purchasing Power
Minister of Aviation and Aerospace Development, Festus Keyamo, has said Nigeria’s N70,000 national minimum wage is inadequate to withstand the economic pressures facing workers.
Keyamo made the remarks at the 2026 National Pre-Retirement Summit organised by XEM Consultants Limited, where he called for greater attention to workers’ welfare and urged the Federal Government to reach a compromise with organised labour in ongoing discussions over wages.
The minister said the purchasing power of the N70,000 wage had been eroded by rising living costs, making an upward review necessary.
His comments add to renewed discussions over Nigeria’s wage structure as organised labour pushes for changes to better reflect prevailing economic conditions.
The N70,000 national minimum wage was introduced in 2024 after negotiations between the Federal Government, organised labour and other stakeholders. At the time, the government increased its offer from N62,000 to N70,000 and agreed that the wage should be reviewed after three years rather than five.
Keyamo Calls for Government-Labour Compromise
Keyamo, who previously served as Minister of State for Labour and Employment, recalled the negotiations that preceded the 2024 increase from N30,000 to N70,000.
According to reports of his remarks, the minister said the economic circumstances that existed when the N70,000 figure was negotiated had changed, leaving workers facing additional financial pressure.
He called on the Federal Government to meet organised labour halfway in the ongoing discussions, noting that labour unions were demanding as much as N500,000 as a new minimum wage.
The N500,000 figure represents labour's reported current demand and is not an agreed new minimum wage. Any change to the statutory minimum would require negotiations and the applicable legislative process.
The debate also highlights the difference between a worker's nominal income and the amount of goods and services that income can actually purchase.
Rising Costs Put Pressure on Workers
The renewed wage debate comes against the background of concerns over food, transportation, energy and other household expenses.
At the same summit, Nigeria Labour Congress President Joe Ajaero argued that wage negotiations should focus not only on the numerical value of salaries but also on workers' purchasing power.
Ajaero called for government intervention to cushion workers and other Nigerians from rising costs, particularly following increases in fuel prices. He also advocated linking wages and pensions more closely to inflation or a cost-of-living index.
Such an approach, according to the NLC president, would allow workers' incomes to respond more closely to significant changes in economic conditions.
The proposal is part of a broader labour argument that simply agreeing on a higher nominal wage may not provide lasting relief if the prices of essential goods and services continue to rise.
Minimum Wage Review Due Under Three-Year Cycle
The current minimum-wage framework was established with a three-year review period.
When President Bola Tinubu announced the N70,000 figure in July 2024, he said the minimum wage would be reviewed after three years. The State House said the shorter review period was agreed instead of the previous five-year cycle.
Ajaero said at the September summit that the next review was expected around March or April and urged stakeholders to begin discussions early.
The timing means minimum-wage negotiations are expected to become increasingly prominent as government, labour and employers consider a new framework.
The process will have to take into account the interests of workers as well as the financial capacity of employers and the different levels of government responsible for implementing wage agreements.
Keyamo Raises Broader Workers' Welfare Concerns
Keyamo's remarks were not limited to the amount workers receive as wages.
The minister also criticised what he described as situations in which workers are denied basic allowances while senior officials receive substantial funding for international trips.
He argued that government agencies should give greater priority to the welfare of the employees responsible for delivering public services.
Keyamo stressed that workers remain central to the functioning of government institutions and the wider economy.
His position places the minimum-wage debate within a broader discussion about working conditions, productivity and the treatment of employees across public institutions.
The minister's comments also reflect the argument that workers' welfare can have implications beyond household finances, because employee conditions can influence productivity and the delivery of public services.
Labour Wants Economic Relief Before New Wage Deal
While discussions over a new minimum wage are expected to take place as the review period approaches, Ajaero said workers also need immediate measures to cope with current economic pressures.
The NLC president pointed to transportation and fuel costs as major concerns and questioned the extent to which existing government initiatives, including the Compressed Natural Gas programme, have reduced transportation expenses for ordinary workers.
He also called for government to use increased oil revenues to provide interventions that could cushion the impact of higher fuel and transportation costs.
For labour, the issue is therefore not limited to the salary figure itself. The cost of living determines how much of that salary remains available after workers pay for food, transport, housing, energy and other necessities.
What Happens Next?
Keyamo's comments do not amount to a new minimum wage or a government announcement of a specific replacement for N70,000.
Instead, they add the voice of a senior federal minister to the growing discussion over whether the current wage remains adequate.
Any new figure will have to emerge from negotiations involving government, organised labour and other relevant stakeholders.
The discussion is also likely to involve questions about affordability, productivity, inflation, employment and the ability of employers and governments to sustain any eventual increase.
For workers, the central concern remains purchasing power: whether their earnings can keep pace with the cost of basic necessities.
The N70,000 minimum wage was agreed in 2024 in response to the economic difficulties of that period, with the three-year review provision intended to allow the wage framework to be reconsidered more frequently.
With the next review approaching, Keyamo's statement signals that the adequacy of the current figure is becoming a significant issue ahead of the next round of wage discussions.
The outcome will depend on negotiations and the eventual decisions of the relevant authorities, but the latest comments indicate that the debate over workers' pay is likely to intensify as Nigeria approaches the next statutory review.
