Kingsley Moghalu, former deputy governor of the Central Bank of Nigeria (CBN), has endorsed the organized labour’s consideration of a ₦100,000 minimum wage for Nigerian workers. This follows the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) repeatedly proposing ₦615,500 and ₦494,000 respectively, citing inflation and economic hardship.
On June 3, organized labour declared a strike over the new minimum wage and increased electricity tariffs for Band A customers. However, the strike was suspended after a meeting with the Federal Government to allow for further negotiation.
In a post on his X handle, Moghalu acknowledged the need for a higher minimum wage but noted that Nigeria’s current productivity levels cannot support the ₦400,000 wage proposed by the NLC. He recommended a more realistic minimum wage range of ₦75,000 to ₦100,000.
Moghalu emphasized that improving productivity through human capital development and better electricity supply is essential. He stated, “In the debates on the national wage in Nigeria, we miss the fundamental point: there is little or no productivity in the economy. If we had a truly productive economy, there is no reason we can’t have the kind of minimum wage of 400 or 500K that Labour wants. But we can’t, because the level of productivity in the economy cannot support it.”
He also highlighted that the minimum wage issue extends beyond government salaries to include the private sector and household staff. Moghalu pointed out the need to avoid a minimum wage that could exacerbate inflation and questioned the productivity and skill level of the average Nigerian worker, which impacts the value they create.
