N1m Minimum Wage Unsustainable, Would Cripple Nigerian Economy, Ajaero Warns

The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has warned that a minimum wage of N1 million could destabilise Nigeria’s economy, stressing the need to address the rising cost of living and strengthen the purchasing power of the naira.

Ajaero made the remarks during an interview on Channels Television on Thursday, amid ongoing discussions between organised labour and the Federal Government over a possible review of workers’ wages.

He said the debate over workers’ earnings should go beyond the amount paid as salaries to include the economic conditions determining the value of those earnings.

According to him, increasing wages without tackling the factors driving inflation and the high cost of living could worsen the country’s economic challenges.

“A N1,000,000 minimum wage will collapse the Nigerian economy,” Ajaero said.

The labour leader maintained that the government should prioritise measures to reduce the cost of essential goods and services while improving the purchasing power of the national currency.

He argued that workers’ welfare could not be adequately addressed through wage increases alone if the prices of food, transportation, housing and other necessities continued to rise.

Ajaero’s comments come amid growing concerns over the financial pressures facing Nigerian workers, with rising fuel prices and the increasing cost of living eroding the value of household incomes.

The Federal Government recently approved a monthly transport allowance of N70,000 for workers as part of measures to cushion the impact of rising transportation costs.

The proposed minimum wage review remains a key issue in labour-government relations, as organised labour continues to seek improved living conditions for workers amid persistent economic pressures.