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The losing battle between Nigeria’s minimum wage vs cost of living

New wage laws promise relief and raise hopes for millions of workers, but with food, rent, transport, and daily essentials climbing at record speed, many Nigerians are asking if higher pay truly translates into a better life.

Every few years, the minimum wage debate comes alive in Nigeria, and for good reason, it is not just about numbers on paper; it is about survival. Behind every figure announced by the government is a worker asking the same simple question: “Can this salary feed my family, pay my rent, get me to work, and still leave something small for savings?”

In July 2024, President Bola Tinubu signed the National Minimum Wage (Amendment) Act, raising the federal minimum wage from ₦30,000 to ₦70,000. On paper, it looked like a bold leap forward, and for many, it was overdue recognition of the realities workers face. But the Nigerian economy does not sit still. Prices of food, transport, rent, and fuel have continued to rise, and in less than a year, that ₦70,000 already feels like it is being swallowed by inflation.

States testing the limits of relief

Interestingly, some states have decided not to stick with the federal benchmark. Imo State grabbed headlines recently when Governor Hope Uzodimma approved a ₦104,000 minimum wage for civil servants, the highest in the country so far. Ebonyi followed closely at ₦90,000, while Lagos NLC, which had already moved to ₦85,000, is reportedly asking for an even bolder jump to ₦150,000.

While some states are taking measures, for many workers, the question is not about whether salaries are increasing, but whether they are increasing fast enough to outpace the rising cost of garri, beans, transport, and rent. Because in real terms, ₦104,000 in Owerri does not stretch the same way as ₦85,000 in Lagos or ₦70,000 in Kano.

Also Read: What’s special about the new ₦70k minimum wage going to parliament?

What the numbers really mean

Independent research from the Anker Institute estimates that a household in rural Nigeria would need around ₦307,000 monthly to cover essentials like food, housing, healthcare, and education. By that yardstick, even Imo’s much-celebrated ₦104,000 covers barely a third of what families realistically need.

In urban hubs like Lagos or Abuja, the gap feels even wider. Rent alone can swallow half a worker’s income, transport and food take most of the rest, and little or nothing is left for savings or emergencies.

The picture is even bleaker for Nigeria’s massive informal workforce, traders, artisans, bus drivers, who are not covered by minimum wage laws at all. For them, debates about ₦70,000 or ₦100,000 sound far away, disconnected from the daily hustle of making ends meet.

Beyond wages: The bigger question

At the end of the day, the debate around minimum wage is not just about digits; it is about dignity. The states raising wages are signalling awareness of how much their people are struggling, but the truth is that there is still a wide gap between what workers earn and what they need to live decently.

Nigerians are resilient; families juggle side hustles, remittances, and shared costs just to survive, but resilience is not the same as relief.

For now, workers in Imo and Ebonyi may feel some comfort from the bump, while those in Lagos wait to see if ₦150,000 becomes reality. But across Nigeria, the bigger test remains: will wages ever rise in step with living costs, or will inflation keep pulling the finish line further away? Until that balance is found, the new wage era might feel less like progress and more like running in place.

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