FG, Govs, Labour at the Table Over N100,000 Minimum Wage

Negotiations for a new national minimum wage have entered a critical phase, with the Federal Government, state governors, and Organised Labour now discussing N100,000 as a possible benchmark. 

The tripartite committee reconvened in Abuja this week after months of deadlock, with Labour insisting that soaring inflation and the removal of fuel subsidy have made the current N30,000 wage “unlivable.” Government and governors are pushing for a figure the states can actually pay without mass layoffs.

The current N30,000 minimum wage was signed in 2019. Since then, inflation has eroded purchasing power. The National Bureau of Statistics pegged inflation at 33.2% in April 2026, with food inflation above 40%. A 50kg bag of rice that cost N18,000 in 2019 now sells for over N75,000 in most markets.

Labour initially demanded N615,000 in January 2024, citing a cost-of-living estimate for a family of six. The FG countered with N48,000, then N54,000. Governors under the Nigeria Governors’ Forum warned that even N60,000 would bankrupt several states.

After strikes, walkouts, and public protests, both sides shifted. Labour brought its demand down to N250,000 in late 2025, then N150,000 in March 2026. The government’s last public offer was N70,000. 

Sources at this week’s meeting say N100,000 has now emerged as a “mid-point compromise” being seriously debated. 

The N100,000 figure did not come out of thin air. Labour’s technical team presented a new template last week:

- *Food*: N45,000 monthly for a family of 4

- *Transport*: N20,000 after fuel subsidy removal 

- *Rent*: N15,000 for a room self-contain in state capitals

- *Health/Education/Misc*: N20,000

Total: N100,000. Labour argues this is a “survival wage,” not a living wage.

The FG and governors are asking for a phased implementation. One proposal on the table: N80,000 from July 2026, then N100,000 from January 2027. Another option is N100,000 for federal workers immediately, with states given 18 months to comply.

This is the sticking point. Data from the NGF shows 13 states still owe salary arrears on the N30,000 wage. Many depend on FAAC for over 80% of revenue. 

Governor Bala Mohammed of Bauchi, speaking for the NGF, said: “We are not against workers earning more. But if you impose N100,000 and allocations don’t increase, you’re asking us to sack workers or stop capital projects.”

Lagos, Rivers, and Delta say they can pay. Osun, Benue, and Zamfara say they can’t without federal support. The FG has hinted at a special intervention fund to help weak states, but details are sketchy.

The Nigeria Employers’ Consultative Association warns that N100,000 could force small businesses to cut jobs. NECA’s DG, Adewale-Smatt Oyerinde, noted that 80% of MSMEs already pay below N50,000. “A blanket N100,000 without productivity talks will cause inflation and unemployment,” he said.

Labour counters that higher wages mean higher consumer spending, which grows the economy. NLC President Joe Ajaero said: “You can’t build a 21st-century economy on 19th-century wages. Workers need to live, not just exist.”

The committee has until June 15 to submit a recommendation to President Tinubu. If no deal is reached, Labour has threatened a “total shutdown” before the end of June.

Three scenarios are likely:

1. Agreement at N100,000: With phased rollout and federal bailout for states. Most probable outcome.

2. Stalemate and strike: If governors reject it outright. Could cripple the economy ahead of Q3.

3. N80,000-N90,000 compromise: Kicks the bigger fight to 2027.

Economists warn that without taming inflation and stabilizing the naira, even N100,000 will lose value fast. N100,000 today buys what N35,000 bought in 2019. 

Dr. Muda Yusuf of CPPE says: “The wage conversation must run with productivity, power supply, and FX reform. Otherwise we’ll be back here in 2 years asking for N300,000.”

For the average worker, the math is simple. A bag of rice, 2kg gas, transport for 20 days, and one room rent already gulps N90,000+ in Lagos, Abuja, and PH. N100,000 is survival, not comfort.

Talks continue next Tuesday. Until then, 40 million workers in the public and formal private sector wait.