Senator Adams Oshiomhole, representing Edo North, highlighted has highlighted the worsening economic conditions for Nigerian workers, stating that today’s workforce is significantly poorer than previous generations.
Speaking at a lecture for members of the Executive Intelligence Management Course 17 at the National Institute of Security Studies in Abuja, Oshiomhole emphasised the declining value of the country’s minimum wage, expressing concern about its impact on the quality of life and well-being of Nigerian workers.
Oshiomhole pointed out that the widely discussed N70,000 minimum wage, when converted to dollars, amounts to just $42, a stark contrast to past levels. “When the minimum wage in Nigeria was established under President Shagari, around 1981, it was about N125, which was equivalent to around $160 a month. Today, despite a 100% increase achieved by labor last year, the current exchange rate reduces this N70,000 to just $42,” he said.
“So, if you divide N70,000 by N1,650, it gives you $42. This shows that working people are much, much poorer now than we were many years ago. This income devaluation affects the quality of life and everything else.”
In light of this disparity, Oshiomhole urged the federal government and more affluent states to raise their minimum wage contributions.
Reflecting on his tenure as the President of the Nigeria Labour Congress (NLC), he shared his experience pushing for states like Lagos, Delta, Bayelsa, Rivers, and Akwa Ibom to pay above the minimum wage.
“A serious employer should not be paying the minimum wage; they should pay more. Major employers, like the civil service, should not pay just the minimum wage. I expect the Federal Government will, over time, adjust its minimum wage,” he asserted.
Oshiomhole also suggested amendments to expand the coverage of minimum wage laws, extending protections to smaller businesses and domestic workers.
He pointed out that current regulations only apply to enterprises with about 25-50 employees, which he argued is outdated given the revenue-generating potential of small businesses in modern industries.
“If you look at the law in Nigeria, which I hope we can amend soon, although the federal government and states have agreed on a N70,000 minimum wage, some employers still pay less,” he stated.
Addressing the phenomenon of emigration, or "Japa syndrome," Oshiomhole highlighted the stark wage disparity between Nigeria and places like California, USA.
He noted, “The minimum wage in California is $16 an hour. Working eight hours a day amounts to $128 daily. Over a month of 20 working days, this totals $2,560 for unskilled labor, a vast difference compared to Nigerian wages.”
He urged policymakers to be mindful of these global contrasts, recognizing the need for thoughtful economic reforms to improve the livelihood of Nigerian workers.
