President of the Nigeria Labour Congress (NLC), Joe Ajaero, has warned that introducing a ₦1 million national minimum wage without addressing Nigeria’s underlying economic challenges could destabilise the economy.
Ajaero made the remarks during an interview on Channels Television on Thursday, October 29, amid ongoing discussions between organised labour and the Federal Government over workers’ wages and welfare.
The labour leader argued that the debate should go beyond the amount workers receive each month, stressing that the government must prioritise reducing the cost of living and strengthening the purchasing power of the naira.
According to him, increasing salaries without tackling the factors driving inflation could leave workers struggling despite earning higher wages.
“₦1,000,000 minimum wage will collapse the Nigerian economy,” Ajaero stated.
NLC Emphasises Purchasing Power Over Salary Figures
Ajaero maintained that improving workers’ welfare requires measures that make essential goods and services more affordable.
He explained that the value of a salary depends largely on what it can purchase, particularly food, transportation, housing and other basic necessities.
The NLC president’s position comes amid concerns that rising living costs continue to erode workers’ earnings, making it increasingly difficult for many households to meet their daily needs.
In his view, addressing inflation and improving the value of the national currency should be central to discussions about a new minimum wage.
Wage Debate Intensifies Amid Rising Costs
The debate over workers’ pay has gained momentum as organised labour calls for improved wages and stronger implementation of existing agreements.
The Federal Government recently approved a proposed ₦70,000 monthly transport allowance for workers for six months, amid rising petrol prices and transportation expenses.
However, labour organisations have continued to argue that temporary financial support cannot replace a sustainable improvement in wages and living conditions.
Ajaero’s comments highlight the tension between demands for higher earnings and concerns about the broader economic consequences of wage increases.
As discussions continue, the central challenge for policymakers and organised labour will be finding a wage structure that improves workers’ purchasing power without creating additional economic pressures.
