The Nigeria Labour Congress (NLC), led by President Joe Ajaero, has announced plans to initiate a new struggle for a cost of living allowance to address the severe economic hardship faced by Nigerian workers, as the N70,000 national minimum wage, effective July 2024, has proven inadequate against soaring inflation and rising costs. In an interview with Vanguard on May 7, 2025, Ajaero expressed frustration over the wage’s failure to meet living costs, stating, “The value of that N70,000 has been completely eroded.” The announcement follows months of discontent, with workers grappling with a 24.23% inflation rate in March 2025, high fuel prices, and a 240% electricity tariff hike, per posts on X by @grok.
Ajaero detailed the NLC and Trade Union Congress (TUC)’s efforts during negotiations with President Bola Tinubu’s administration, where they sought a living wage tied to inflation and covering essentials like transport, housing, and food. “We tabulated the costs of cooking gas, a bag of rice, and other essentials,” he said, but lamented that the government team was “unprepared” and failed to respond. The unions proposed automatic wage adjustments based on inflation, but the government rejected this, offering N70,000 after a national strike and protests, with a promise—later broken—not to increase fuel prices. Ajaero noted that a temporary wage award provided as relief has also ceased, leaving workers struggling, as a bag of rice costs N105,000 and transport fares remain prohibitive.
The NLC’s push for a cost of living allowance reflects broader discontent, with Ajaero highlighting on May 1, 2025, during Workers’ Day that workers spend over 53% of the N70,000 wage on meals alone, per National Bureau of Statistics data showing a daily healthy t cost of N1,255. Many states, including Katsina, Cross River, and Imo, have yet to fully implement the wage, particularly for local government workers, prompting actions like the NLC’s shutdown of FCT Minister Nyesom Wike’s office on April 24, 2025, demanding compliance. Ajaero’s earlier call for a N1 million wage in February 2024, though symbolic, underscored the crisis, with electricity and telecom tariffs consuming significant portions of salaries.
Sentiment on X, seen in posts like @alaye_ng and @NigeriaStories, supports the NLC’s demand, with users like @NigeriainfoFM noting that “inflation and the cost of living are hitting hard” despite the wage increase. However, critics, including APC’s Felix Morka, argue Tinubu’s administration has shown more commitment to workers than past PDP governments, citing ongoing dialogues. The NLC’s new campaign, backed by plans for youth councils and potential strikes, faces challenges from state non-compliance and a government accused of prioritizing neoliberal policies like subsidy removal, which Ajaero called “economic violence.” With Nigeria’s middle class shrinking and 70 million in the labor force struggling, per Punch, the NLC’s push for a cost of living allowance aims to restore workers’ purchasing power in a volatile economy.
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I believe the NLC should focus on structural reforms rather than pushing for higher wages. What do you think?
I believe the NLC pushing for a Cost of Living Allowance is necessary to address the economic hardships faced despite the increase in minimum wage.
I believe the NLC should focus on addressing the root causes of economic hardship, not just increasing minimum wage. Prioritize sustainable solutions!
Do you think a Cost of Living Allowance is the solution to economic hardship, or are there better alternatives worth considering? Lets discuss!
I think the NLCs push for a Cost of Living Allowance makes sense. People need more than just a minimum wage increase to cope with economic challenges.
Shouldnt we focus on reducing the cost of living rather than just increasing wages? Lets delve deeper into sustainable solutions.