FG shifts minimum wage review to every 2 years

The Federal Government has announced a significant policy shift in minimum wage reviews, reducing the interval from five years to two years.

This decision underscores its commitment to addressing the economic challenges faced by Nigerian workers.

Speaking in Abia State on Thursday, January 9, the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, revealed the new plan, describing it as a reflection of President Bola Tinubu’s vision for improved welfare.

“We are not going to allow minimum wage review to be forever,” Onyejeocha stated.

“It used to be about five years, but now, in less than two years, we will review the minimum wage again.”

This shift builds on President Tinubu’s earlier pledge to review the minimum wage every three years.

In 2023, Tinubu approved a ₦70,000 minimum wage, which took effect on July 29, 2024, following an agreement with the Labour Union.

Inflation rate factor

While many have welcomed the government’s move, the Trade Union Congress (TUC) has called for annual reviews, citing soaring inflation.

In November 2024, Nigeria’s inflation rate hit 34.60 per cent, eroding the purchasing power of workers despite the wage increase.

Labour representatives argue that yearly reviews are crucial to safeguarding employees against the devastating impacts of inflation.

The federal government’s updated policy aims to balance worker welfare with economic realities.

As Onyejeocha emphasised, “This is about ensuring we don’t wait too long to address the needs of our workforce.”