Historical Review Of Minimum Wage Increment In Nigeria From Past To Present (Check Out Dates, Amount)

Before Nigeria gained independence in 1960, there was no formal minimum wage policy. Wages were largely determined by colonial authorities and varied widely across different regions and sectors.

After gaining independence in 1960, Nigeria began to develop its labor policies, including wage regulations. However, it wasn’t until 1981 that the first formal minimum wage was introduced.

Meanwhile, Minimum wage policies are crucial for ensuring a basic standard of living for workers. In Nigeria, the national minimum wage has been a subject of significant debate and numerous adjustments over the years, reflecting economic conditions, inflation, and the cost of living.

As of now, there are ongoing discussions and pressures from labour unions for a further increase in the minimum wage, citing the continued devaluation of the naira and an unprecedented rise in the cost of living due to inflation and economic instability caused by global economic pressures and the COVID-19 pandemic.

The labour unions argue that the current minimum wage is insufficient to meet the basic needs of Nigerian workers.

The organised labour consisting of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have insisted that the Federal Government and State Government must pay  ₦250,000 for workers in the country.

However, state Governors, on their part, rejected the stand of organised labour, pointing out that state governments can not afford the required amount.

Hence, Osun Defender has exclusively gathered a detailed look at the history of minimum wage increments in Nigeria, including dates and amounts:

1. 1981 –  ₦125 per month

As said earlier, the first official minimum wage in Nigeria was established in 1981, under President Shehu Shagari. The economy was relatively stable, and this wage was deemed acceptable for the living standards of the time. The decree was a response to increasing labor unrest and demands for better wages from workers’ unions.

2. 1991 –  ₦250 per month

A decade later, the minimum wage was revised to  ₦250 per month during the military regime of General Ibrahim Babangida. This increment came as a result of economic challenges and inflationary pressures that eroded the purchasing power of workers’ wages from the 1981 rate.

3. 1998 –  ₦3,000 per month

Under General Abdulsalami Abubakar, the minimum wage saw a significant jump to  ₦3,000 per month. This increase was in response to the devaluation of the naira and the general increase in the cost of living over the previous years.

4. 2000 –  ₦5,500 per month

Under President Olusegun Obasanjo’s administration, the minimum wage was significantly increased to ₦5,500, reflecting the need to address inflation and improve living standards.

READ: Tinubu Asked For More Time To Consult On New Minimum Wage – Minister

5. 2004 –  ₦7,500 per month

Continuing the trend of gradual increases, the minimum wage was raised to  ₦7,500 per month in 2004. This increment was still under President Obasanjo’s administration and followed extensive negotiations with labour unions.

6. 2011 –  ₦18,000 per month

This adjustment was implemented during President Goodluck Jonathan’s administration. The increment followed extensive negotiations between the government and labor unions, aimed at improving workers’ conditions amidst rising living costs.

7. 2019 –  ₦30,000 per month

The most recent minimum wage increment was signed into law by President Muhammadu Buhari in 2019. This was in response to the continuous decline in the value of the naira and the increasing cost of living. The new wage was seen as a necessary step to enhance the welfare of Nigerian workers.

2024 – ?

President Bola Tinubu has revealed that a consensus has been reached on the long-debated new minimum wage between the Federal Government and organised labour.

In his national broadcast to mark the 2024 Democracy Day in Abuja on Wednesday, Tinubu revealed that an executive bill will soon be sent to the National Assembly to formalise the new minimum wage agreement.

He stated, “In this spirit, we have negotiated in good faith and with open arms with organised labour on a new national minimum wage.

“We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less.”