N1 Million Wage Worthless Without Strong Naira, Says Nigeria Labour Congress Chief

The Nigeria Labour Congress (NLC) has issued a stark warning: a proposed N1 million monthly salary is essentially worthless if the Nigerian naira continues its downward spiral and the broader economy fails to stabilize. NLC President Joe Ajaero articulated this position, emphasizing that the focus should not solely be on the nominal figure of wages but on the actual purchasing power of the currency. He argued that the relentless rise in inflation is systematically eroding workers' ability to afford basic necessities, making even a substantial salary inadequate for survival.

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Even if Nigerian workers earn N1 million, it will not be meaningful if the naira has no value.

Ajaero stressed that the value of the naira is paramount. 'Even if Nigerian workers earn N1 million, it will not be meaningful if the naira has no value,' he stated, highlighting the critical need for a currency that can sustain families throughout the month. This perspective shifts the conversation from mere wage hikes to the fundamental economic stability required to make any salary meaningful. He also addressed the ongoing minimum wage negotiations, assuring that the process would adhere to legal procedures and review cycles, cautioning against rushing the process due to political timelines.

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What we are looking for is a currency that can sustain workers and their families at least to the end of the month.

Furthermore, the NLC president called for immediate government intervention to cushion the severe impact of inflation on workers. He pointed to the surge in fuel prices as a major contributor to the increased cost of living, affecting transportation, food, and overall expenses. Ajaero advocated for Nigeria to develop a robust energy policy that insulates the economy from external shocks, preventing global events from translating directly into domestic hardship. On the issue of pensions, he noted concerns about the proliferation of pension unions, which has created confusion, and affirmed the NLC's commitment to engaging with stakeholders to ensure clarity and proper coordination within the system.

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The minimum wage has not been negotiated yet. It is a process that must follow the law.