Millions of low-income Nigerians are struggling to cope with rising living costs as expensive energy, declining purchasing power and limited formal employment opportunities continue to worsen economic hardship.
The situation has renewed concerns about the effectiveness of the national minimum wage, particularly as labour unions prepare for future wage negotiations. Many workers argue that the current minimum wage of ₦70,000 is insufficient to meet basic household needs amid rising food, transportation and utility costs.
A recent inflation expectations survey by the Central Bank of Nigeria found that households earning below ₦70,000 had the highest perception of inflation, at 68.4 per cent. Respondents identified energy costs, insecurity, interest rates and exchange rate pressures as major contributors to rising prices.
Although inflation has moderated from its peak in 2024, the cost of essential goods and services remains high for many households. The removal of petrol subsidies has also increased transportation and business expenses, placing additional pressure on workers and small businesses.
The Nigerian Economic Summit Group estimates that approximately 92 per cent of Nigerian workers operate in the informal sector, leaving only a small proportion employed in the formal public and private sectors. This has raised questions about how effectively minimum wage policies can protect the wider workforce.
Despite the government’s reported savings of at least ₦15.8 trillion from the removal of fuel subsidies and increased revenue allocations to states, many Nigerians say they have yet to experience meaningful improvements in their living conditions.
The Federal Government has introduced social intervention programmes, including cash transfers and compressed natural gas initiatives, to reduce the impact of economic reforms. However, critics argue that implementation has been limited and that many vulnerable households have not received adequate assistance.
Nigeria Labour Congress Assistant General Secretary Chris Onyeka maintained that temporary financial assistance cannot replace sustainable wages and policies that create jobs. He called for stronger purchasing power, improved infrastructure, better security and measures to reduce the cost of doing business.
Onyeka also urged authorities to reduce the fees and levies imposed on market traders and commercial transport operators, arguing that doing so would provide immediate relief to low-income earners.
Similarly, development consultant Jide Ojo called on the government to account for the reported savings from subsidy removal and demonstrate the impact of social investment spending. He questioned whether the funds allocated to intervention programmes had delivered measurable benefits to ordinary Nigerians.
Meanwhile, Centre for the Promotion of Private Enterprise Chief Executive Officer Muda Yusuf urged state and local governments to use their increased revenue allocations to cushion the effects of rising living costs. He acknowledged improvements in some macroeconomic indicators but stressed that governments at all levels must translate higher revenues into tangible benefits for citizens.
With household expenses continuing to outpace the earnings of many workers, labour representatives and economic analysts are calling for stronger social protection, sustainable income growth and policies that create productive employment opportunities.
