Senator Adams Oshiomhole, a former Nigeria Labour Congress (NLC) president and ex-governor of Edo State, has voiced concerns about the financial hardships faced by Nigerian workers today.
According to him, the current economic challenges have made life even tougher for modern-day workers than those who served in previous decades.
Speaking at the National Institute of Security Studies in Abuja during a distinguished personality lecture for Executive Intelligence Management Course 17, Oshiomhole raised questions about the adequacy of the recently announced N70,000 minimum wage. He emphasized the limited purchasing power of the amount, especially when compared to historical wages in dollar terms.
Reflecting on the era of President Shehu Shagari, he noted that the N125 minimum wage set in 1981 was valued at approximately $160, a stark contrast to today’s N70,000 minimum, which he equated to around $42 at the current exchange rate.
“When the minimum wage was established under President Shagari around 1981, it was set at about N125, translating to roughly $160 a month,” Oshiomhole explained. “Today, with the N70,000 minimum wage increase, the dollar equivalent is only $42. This reflects the steep erosion of value and buying power, leaving workers worse off than before.”
He called on both the federal government and high-revenue states to consider increasing the minimum wage beyond the current threshold to address this depreciation in value.
Furthermore, Oshiomhole suggested broadening the scope of the minimum wage law to cover domestic workers and other underrepresented roles, given the rising importance of small businesses and technology-driven firms. He criticized the existing legislation for only applying to enterprises with a minimum of 25 to 50 employees, arguing that it overlooks the revenue potential of smaller, tech-driven firms that may employ fewer staff but generate substantial income.
“With changes in technology, a small ICT firm with just 10 employees can produce significant turnover,” he stated. “Using employee numbers as the sole determinant was relevant when our economy was less tech-driven, but it doesn’t suit today’s landscape.”
