The Nigeria Labour Congress (NLC) President, Joe Ajaero, and the Trade Union Congress (TUC) President, Festus Osifo, have explained that the decision to accept ₦70,000 as the new minimum wage for Nigerian workers was influenced by a shift in the wage review cycle. Instead of every five years, wage reviews will now occur every three years.

Speaking after a meeting with President Bola Tinubu at the State House in Abuja, Ajaero highlighted the advantage of more frequent reviews, stating, “What has been announced, ₦70,000, reflects where we are now. The significant aspect is that we no longer have to wait five years for a review. We can now negotiate at least twice within five years.”

Ajaero also mentioned that additional issues, such as concerns from the Senior Staff Association of Nigerian Universities (SSANU) and the Non-Academic Staff Union (NASU), were addressed during the meeting. President Tinubu directed relevant agencies to develop payment plans for university workers.

Osifo added that the labour unions have been advocating for shorter review periods due to rapid changes in economic conditions. He stated, “The President’s announcement of ₦70,000 is welcome because it includes a provision for reviews every three years. This is a significant improvement, reflecting our economic realities.”

This agreement follows a series of discussions between labour leaders and President Tinubu, which began after the formation of a tripartite committee on minimum wage in January. The committee, consisting of representatives from state and federal governments as well as the Organized Private Sector, had initially proposed ₦62,000, while labour unions demanded ₦250,000.

The previous minimum wage of ₦30,000 was deemed unsustainable due to inflation and the high cost of living exacerbated by the removal of the petrol subsidy. Information Minister Mohammed Idris confirmed that the agreed amount of ₦70,000 will be communicated to the National Assembly soon.