Abiodun Aladetan calls for urgent relief for workers, affordable housing, better healthcare and mass transit, warning that rising living costs have eroded the value of the ₦70,000 minimum wage.
The Chairperson of the Lagos State Council of the Trade Union Congress (TUC), Abiodun Aladetan, has urged the Federal Government to commence negotiations for a new national minimum wage ahead of its June 2027 review, arguing that early discussions would prevent delays and further hardship for Nigerian workers.
Aladetan also called for an immediate ₦100,000 flat-rate wage award to cushion the effects of rising petrol prices and the cost of living, pending the negotiation and implementation of a new minimum wage.
He made the recommendations while speaking on the Ask the Expert segment of Trade FM’s Breakfast Business Briefing, where he discussed the Nigeria Labour Congress’s demands, workers’ declining purchasing power, and measures needed to improve living standards and avert a possible nationwide strike.
According to him, the urgency of the demands is underscored by the declining value of the national minimum wage when measured against the exchange rate and the rising cost of basic necessities.
He recalled that Nigeria’s minimum wage was about ₦5,500 in 2000, equivalent to approximately $54 at the time, before rising to ₦18,000 in 2011, valued at about $118.
Under the administration of former President Muhammadu Buhari, the minimum wage was increased to ₦30,000 in 2019, which Aladetan said was worth approximately $98 at the prevailing exchange rate.
The wage was subsequently raised to ₦70,000 in 2024, following negotiations under President Bola Tinubu’s administration. Aladetan estimated its value at approximately $42 to $43 at the time and about $52 in 2026.
Using the figures, he argued that workers’ earnings had lost significant purchasing power despite successive increases in the nominal minimum wage.
“Which means in 2026, the value of the minimum wage is lower compared to the year 2000. Because in year 2000, in line with the exchange rate, it was worth $54. In 2026, it is worth $52. In 2011, it was $118,” he said.
He added that the impact of economic policies, particularly the removal of the petrol subsidy and the floating of the naira, had made it increasingly difficult for workers to meet their basic needs.
“For us to be fair, when you look at the value of the naira, what can you buy as an average worker when you go to the market? Can you pay your rent? Can you successfully move from one location to the other? Can you pay school fees? Can you feed your family comfortably?” he asked.
Aladetan said the economic situation had reached a point where workers were struggling to see the benefits of remaining employed when their earnings could no longer adequately provide for their families.
“The fact remains, if you cannot afford the basic necessities of life, then you begin to ask, what is the essence of working?” he said.
TUC chair seeks ₦100,000 wage award
To provide immediate relief, Aladetan proposed that the Federal Government introduce a temporary wage award of ₦100,000 for workers while broader negotiations and economic reforms continue.
He recalled that the government had previously approved a ₦35,000 wage award following the removal of the petrol subsidy, describing the measure as a temporary intervention intended to cushion the economic shock before a new minimum wage was negotiated.
According to him, the wage award was discontinued after the ₦70,000 minimum wage was signed into law, but the subsequent increase in living costs has created the need for another intervention.
“What we are saying now is, in the spirit of trying to show understanding also with the government, we strongly hold the view that there must be some measures that must be put in place to actually manage the effects of this high cost of living occasioned by the rise in the cost of PMS and all that,” he said.
“So one of those ways is the introduction of a wage award. We need a wage award. That is very urgent. Government should just do something. You can make a pronouncement, ₦100,000 flat rate for everybody, just manage.”
He said the proposed payment would help workers cope with the economic situation until the next minimum wage review, while the government considers other measures to reduce the cost of living.
Aladetan also called for targeted interventions to reduce transportation expenses, noting that the cost of commuting to work takes a substantial portion of workers’ earnings.
Why early minimum wage negotiations matter
The TUC chairperson rejected the argument that negotiations for a new minimum wage would be premature before the current wage arrangement becomes due for review in 2027.
He distinguished between commencing negotiations and implementing a new wage, arguing that the complexity of the process made early engagement necessary.
According to him, negotiations involve several stakeholders, including organised labour, employers represented by the Nigeria Employers’ Consultative Association (NECA), the Federal Government and state governments.
The process also requires time for consultations, agreement on a proposal, legislative consideration and presidential assent.
Aladetan said delaying the commencement of negotiations could result in the process extending beyond the effective date of the new wage, potentially creating disputes over implementation and arrears.
“There is a difference between you commence the process and you implement. These are two big different things,” he said.
“Commencing the process simply means let’s start having a conversation, because it has shown that in the course of having this conversation, it is not something that happens in a month.”
He recalled previous minimum wage negotiations that began after the existing arrangement had expired and dragged on for more than a year, leaving workers waiting for an adjustment they were already entitled to negotiate.
To avoid a recurrence, he argued that discussions should begin early enough for an agreement to be reached before the next effective date.
“If, for example, it’s supposed to be due in July 2027, you now find government concluding it in November 2027. As workers are going to do their work, they will request for arrears,” he said.
“In order to avoid things like that, you can commence it. So maybe probably when it is July 2027, you now say implementation starts July. Government doesn’t have to pay arrears. Everything just moves seamlessly.”
Aladetan, however, commended the Tinubu administration for reducing the minimum wage review cycle from five years to three years, saying the change had made it possible to discuss adjustments in response to current economic realities.
He maintained that workers should not have to wait until their earnings have been severely eroded before wage negotiations begin.
Wage review must consider inflation, productivity
While supporting improved wages, Aladetan cautioned against fixing a minimum wage without considering inflation, productivity, employers’ ability to pay and the long-term sustainability of the economy.
He argued that wage reviews should take account of changes in the cost of living so that workers do not continually lose purchasing power between adjustments.
“If you now have inflation at 20 per cent, what you simply would do is to adjust the wages in line with that inflation. Are you getting it? So that I don’t lose anything,” he said.
He warned that economic policies that failed to account for the welfare of workers could have far-reaching consequences, affecting household spending, businesses and the wider economy.
Aladetan also cautioned against treating minimum wage negotiations as a political contest, particularly as the country approaches another election cycle.
He said organised labour would welcome any wage increase capable of lifting workers out of poverty but would not support a proposal that destabilised the economy or caused widespread job losses.
“As workers’ representative, we welcome any amount that will pay, that will take workers out of poverty. We will welcome it. But the question is this: the economy is very key to us. We will not want to negotiate something that will put the economy in crisis,” he said.
Referring to the Udoji Commission’s wage review during the 1970s, Aladetan warned that a substantial wage increase, without a corresponding expansion in production and the supply of goods and services, could fuel inflation.
He explained that when more money enters an economy without a corresponding increase in production, demand could outstrip supply, reducing the purchasing power of the currency.
He therefore called for minimum wage negotiations to be guided by credible economic data, prevailing conditions and the capacity of employers to sustain the agreed payments.
“What should determine the next minimum wage in Nigeria is not just for us to come out and call a figure. I think it should be based on the data. It should be based on reality. It should be based on ability to pay. It should be based on sustainability,” he said.
Aladetan also expressed doubts that even ₦500,000 a month would adequately cover the needs of every worker, particularly those living in expensive cities such as Lagos.
He noted that housing, transportation, education and other essential expenses vary across the country, making it necessary to consider regional differences in living costs when evaluating workers’ welfare.
He further warned that a substantial increase in the minimum wage could place pressure on small businesses and employers in the informal sector, potentially forcing them to lay off workers or increase the prices of goods and services.
“The minimum wage is the lowest ceiling that an employer must not go below. It is a protection that you can’t go below this ceiling. This is the lowest you can pay,” he said.
According to him, the objective should be to secure decent living standards for workers without undermining employment opportunities or business sustainability.
“We want people to be in jobs, and we also want an amount that, to some extent, will be able to afford an average Nigerian a decent life,” he said.
Government urged to provide affordable housing, healthcare
Beyond wage increases, Aladetan called on the government to adopt policies that would reduce the expenses workers incur on housing, healthcare and other necessities.
He proposed large-scale affordable housing schemes that would allow workers to acquire homes through mortgage arrangements and structured payment plans.
He argued that housing investment could also stimulate economic activity by creating jobs for construction workers, artisans, plumbers, electricians and other professionals, while generating demand for building materials.
According to him, workers who spend a significant proportion of their income on rent would have more disposable income if affordable homeownership arrangements were available.
He said the government should treat housing as both a social intervention and an economic development strategy.
Aladetan also advocated wider access to health insurance, arguing that medical expenses could quickly consume workers’ earnings when they have to pay out of pocket for consultations, drugs, hospital admissions and other services.
With effective health insurance, he said, workers would be better protected from unexpected medical bills and could devote more of their income to other household needs.
He maintained that improving access to essential services would reduce the pressure on organised labour to repeatedly demand higher wages as inflation erodes previous increases.
“The truth is this: when you increase the money today, tomorrow inflation takes it. So it’s just a case of they give you from the right hand and you take with the left hand,” he said.
Aladetan argued that a comprehensive welfare strategy should therefore combine appropriate wages with affordable housing, healthcare and transportation.
Lagos rail expansion, CNG buses proposed
On transportation, the TUC chairperson called for significant investment in rail infrastructure, particularly in Lagos, where large numbers of commuters travel daily between residential communities and commercial centres.
He advocated a rail network that would connect more parts of the state, allowing workers to spend less time in traffic and reduce the amount of money they spend travelling to work.
Using the Lagos rail services as an example, he said mass transit systems could move large numbers of passengers more efficiently than conventional road transport.
He also pointed to the relatively affordable fares on the Lagos-Ibadan train service, which he estimated at between ₦3,000 and ₦4,000, as an illustration of how rail transport could reduce travel expenses over longer distances.
“If you have more of this, then it will drastically bring down the cost of movement for human beings, goods and services,” he said.
Aladetan added that improved rail connectivity could enable people living in communities such as Ikorodu to commute more efficiently, saving time and reducing dependence on private vehicles.
He described mass transportation as an area requiring deliberate, long-term government investment, particularly as the cost of fuelling and maintaining private cars continues to rise.
He proposed a phased approach to easing transportation costs, with immediate interventions including wage awards and compressed natural gas-powered buses, followed by sustained investment in rail infrastructure over the medium and long term.
“The short-term could just be give them wage award and maybe provide some CNG buses. You know, we know those ones are short-term. But the long-term goal should be that let us invest massively in rail line, rail system,” he said.
He expressed the hope that sustained investment over the next five to six years would create a more efficient public transportation system and reduce the need for temporary palliatives.
Flexible work arrangements could reduce expenses
Aladetan also called for employers to consider flexible work arrangements, including working from home where physical presence in the office is not essential.
He said a system under which employees report to the office only on designated days could help reduce commuting costs, ease pressure on transportation infrastructure and improve productivity.
However, he acknowledged that remote work would depend on the availability of the necessary infrastructure and the nature of the job.
He said the government and employers should examine such arrangements as part of a broader effort to reduce the financial burden on workers.
TUC chair raises concerns over labour law enforcement
The union leader also criticised weak enforcement of labour laws, arguing that Nigeria had sufficient legal provisions to protect workers but needed stronger implementation.
He alleged that some foreign-owned companies, including Chinese and Lebanese firms operating in Nigeria, engaged in anti-labour practices, including what he described as unjustified dismissals.
Aladetan said workers who believed they had been unfairly dismissed should consider seeking redress at the National Industrial Court of Nigeria, which he said had ruled in favour of workers in several cases.
However, he acknowledged that fear of unemployment often prevented employees from challenging their employers, even when they believed their rights had been violated.
He also called for a review of the minimum wage law’s coverage threshold, arguing that limiting its application based on the number of employees could leave some workers vulnerable.
According to Aladetan, employers could exploit the threshold by keeping their workforce below the required number to avoid obligations under the law.
He proposed extending minimum wage protection to all Nigerian workers, regardless of whether they work for a large organisation or a small business.
“Maybe in the next review, maybe we should just remove that caveat totally and say every Nigerian, whether you recruit one or two, should apply the minimum wage law instead of saying at least 25,” he said.
He argued that wider coverage would help close gaps in worker protection and ensure that employment in smaller organisations did not automatically translate into weaker wage safeguards.
Government urged to demonstrate financial capacity
Responding to concerns that the Federal Government might be unable to afford the wage demands, Aladetan said organised labour was entitled to make proposals, while government should substantiate its position with credible financial information.
He described minimum wage negotiations as a process of social dialogue requiring transparency, compromise and evidence from both sides.
“If you are saying you cannot pay, it’s a process. It’s a product of negotiation. It’s a process of social dialogue. Bring your data on the table,” he said.
He maintained that government should present information on its revenue, expenditure and financial commitments so that labour could assess the basis of its position.
Aladetan also said workers would be more willing to consider financial constraints if government demonstrated that it was genuinely reducing unnecessary expenditure and sharing the burden of economic adjustment.
“If government is saying there’s no money, then we need to also look at your lifestyle,” he said.
“If, for example, you say there is an austerity measure, we should all tighten our belt, and we see other people living in affluence and all that, you are not convincing that there is no money.”
He added that organised labour recognised some positive steps by the administration, citing its approval of gratuity payments for eligible retiring public servants, which he said would take effect from January 2026.
Aladetan described gratuity as a means of recognising long years of service and providing additional financial support to workers at retirement.
He said such measures, alongside better wages and access to essential services, would help improve workers’ welfare beyond their active years of employment.
TUC urges dialogue to avert nationwide strike
On the possibility of a nationwide strike if the labour demands are not addressed, Aladetan urged the Federal Government to engage organised labour promptly and resolve the dispute through dialogue.
He said the current economic situation had placed workers under severe pressure and warned against interpreting their demands solely through a political lens.
According to him, the government should recognise that the cost-of-living crisis was a genuine concern for workers and take steps to address it before tensions escalate.
He expressed confidence that continued engagement between government and labour could prevent industrial action, provided both parties approached the discussions in good faith.
“I hope the government will quickly call the labour leaders and resolve this issue,” he said.
“Nigerians are not smiling, Nigerians are angry, and workers are not finding it funny.”
Aladetan maintained that the welfare of workers should not become a political bargaining tool, particularly as the country approaches the next election cycle.
He called on the government to sit down with organised labour and address the demands in the interest of national stability and the well-being of Nigerian workers.
On the concrete commitments workers should expect in the coming weeks, he explained that organised labour operates through established structures and takes directives from its national organs.
He indicated that decisions on the next steps would therefore depend on the position and instructions of the relevant national leadership, with further action guided by the outcome of engagements with the government.
The TUC chairperson’s central message was that resolving workers’ hardship would require more than a single wage adjustment. He argued that sustainable improvements would depend on a combination of fair remuneration, stronger labour law enforcement, affordable public services, productive economic policies and constructive dialogue between government and organised labour.
