A private employment expert, Olajide Afolabi, has called for a comprehensive review of Nigeria’s minimum wage structure, warning that rising transportation costs and inflation are putting increasing pressure on workers, employers and businesses.
Speaking during an interview on Trade FM’s Breakfast Business Briefing, Afolabi said the Federal Government’s proposed ₦70,000 transport allowance, agreed with the Nigeria Labour Congress (NLC), would provide some relief but was insufficient to address the financial difficulties facing Nigerian workers.
He noted that the Trade Union Congress (TUC) had rejected the arrangement, advocating instead for transportation support to be incorporated into the broader salary structure rather than introduced as a temporary six-month intervention.
Afolabi explained that transportation expenses vary significantly depending on workers’ locations, pointing to Lagos commuters who travel from areas such as Ikorodu to Victoria Island and Lekki, as well as those commuting from neighbouring Ogun State communities such as Mowe and Sango-Ota.
He stressed that the rising cost of transportation has also affected recruitment and staff retention, revealing that a prospective employee recently rejected a job opportunity in Victoria Island because commuting from Ikorodu would consume almost half of the offered salary.
According to him, some qualified candidates now prioritise employment opportunities closer to their homes because transportation expenses have become a major consideration in accepting job offers.
The private employment expert said businesses are equally struggling with increased operating expenses, including fuel, transportation, foreign exchange fluctuations and high interest rates, adding that these challenges must be addressed collectively rather than in isolation.
On possible solutions, Afolabi disclosed that some private sector employers have introduced company buses, carpooling arrangements and hybrid work schedules to reduce employees’ transportation expenses. He noted that such arrangements help businesses support workers without placing additional pressure on their operating costs.
He also argued that Nigeria’s ₦70,000 national minimum wage does not adequately reflect current living conditions, stressing that the purchasing power of workers matters more than the amount stated in their pay packages.
Afolabi maintained that fixing the economy should take priority over simply increasing salaries, explaining that improved economic conditions would strengthen the value of workers’ earnings.
He further warned that prolonged commuting hours contribute to lateness, exhaustion, declining productivity and health challenges among workers, particularly in major cities such as Lagos, where some commuters spend several hours travelling distances that should ordinarily take less than an hour.
He therefore urged the government to invest more in alternative transportation infrastructure, including waterways, rail services and improved road networks, to ease traffic congestion and improve workforce productivity.
Afolabi said any sustainable review of workers’ welfare should involve government, employers and organised labour through the tripartite dialogue framework established under Nigeria’s labour system.
He emphasised that the National Minimum Wage Act already provides a framework for reviewing workers’ earnings and that transportation-related benefits should be considered within that process rather than through temporary arrangements.
He also called for stronger public-private partnerships to develop Nigeria’s transportation system, noting that states should adopt solutions that reflect their individual needs.
Using Lagos as an example, he recommended improved investment in water transportation, expansion of rail services and better road infrastructure to provide commuters with more affordable and efficient travel options.
Afolabi concluded that sustainable business operations and improved workers’ welfare must go hand in hand, stressing that a stronger transport system and a healthier economy would benefit workers, employers and Nigerians generally.
