The President of the Trade Union Congress of Nigeria (TUC), Festus Osifo, has strongly advocated for an increase in the minimum wage, saying it will not exacerbate inflation as some have argued.
In an interview with Channels Television, Osifo rejected claims that paying workers a higher minimum income would fuel price rises across the economy. He pointed to the significant boost in revenues being allocated to states from the federation account since May 2023.
“If you look today, revenue from FAAC to state governments has tripled. This means states have more money to develop infrastructure and deliver public services. The most critical aspect of production is labor – it is prudent to take some of these increased funds to pay workers fairly,” Osifo stated.
He emphasized that money paid to workers as wages will still be pumped back into the economy through spending, unlike if allocated to non-labor costs. “Giving workers what is due to them won’t necessarily worsen inflation,” the labor leader asserted.
The interview comes amid sustained economic pressures from fuel subsidy removal and the central bank’s forex policy unification. Against this backdrop, organized labor has been advocating strongly for a new national minimum wage above the current ₦30,000 level to help ameliorate the impacts of rising inflation.
While the federal government is considering wage adjustments between 25-35% for civil servants, unions are submitting a demand of ₦615,000 as an adequate minimum for all workers. Osifo urged the government to honor this demand by May 1st Workers’ Day. Should negotiations succeed, it could offer some relief to low-income Nigerians facing rising costs of living.
