NLC, TUC Demand “Living Wage,” Reject Taxation of Minimum Wage Ahead of 2026 Review
By Angela Udende / June 18, 2026
ABUJA, NIGERIA — Nigeria’s organised labour movement has signalled the beginning of another major battle over workers’ welfare, announcing plans to formally engage the Federal Government on a fresh review of the national minimum wage amid worsening economic hardship, rising inflation and declining purchasing power.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) declared that Nigerian workers can no longer survive on the current wage structure, insisting that the upcoming negotiations must deliver a genuine living wage capable of reflecting prevailing economic realities.
The labour unions made their position known in a joint address delivered during the 114th International Labour Conference in Geneva, Switzerland, where they also rejected proposals to tax minimum wage earners or introduce additional fiscal burdens on low-income Nigerians.
The development sets the stage for what could become one of the most significant labour-government negotiations ahead of the 2027 general elections.
Labour Signals Early Start to Wage Renegotiation
The current national minimum wage of ₦70,000 was signed into law in July 2024 following extensive negotiations between organised labour and the administration of President Bola Ahmed Tinubu.
Although the wage agreement initially provided for reviews every three years, the Federal Government later revised the framework in January 2025, reducing the review cycle to two years and effectively making 2026 the next wage review period.
With the review window approaching, labour leaders said they intend to commence discussions by July 2026 to prevent the delays that characterised previous wage negotiations.
According to the unions, formal communication will be sent to the government immediately upon their return from Geneva.
“The current Act expires early next year, and we have announced that renegotiation will commence by July 2026 to avoid the painful delays of the past,” the labour leaders stated.
The announcement signals a proactive strategy by labour unions determined to ensure workers are not left waiting for years before wage adjustments are implemented.
Inflation Erodes Value of Current Wage
At the heart of labour’s demand is the argument that the ₦70,000 minimum wage has been severely weakened by inflation and persistent increases in the cost of living.
The unions noted that workers continue to grapple with soaring food prices, rising transportation costs, expensive housing, escalating healthcare expenses and increased utility bills.
According to labour leaders, official economic statistics fail to capture the daily realities faced by millions of Nigerians struggling to support their families.
Economic analysts observe that while the minimum wage represented a significant increase when introduced in 2024, persistent inflation has substantially reduced its real value.
As a result, organised labour insists that future negotiations must focus not merely on nominal salary increases but on safeguarding workers’ actual purchasing power.
Labour Rejects Tax on Minimum Wage Earners
One of the strongest positions taken by the NLC and TUC was their outright rejection of any attempt to impose taxes on minimum wage earners.
The unions warned that such measures would further impoverish already struggling workers and deepen socioeconomic hardship across the country.
“We demand nothing less than a genuine living wage that reflects today’s harsh economic realities,” the unions declared.
“We reject outright any attempt to tax the minimum wage or impose further burdens on the poor.”
Labour leaders argued that government policies should prioritise protecting vulnerable citizens rather than introducing measures that further reduce disposable income among low-income earners.
Call for Immediate Relief Measures
Beyond wage adjustments, organised labour is demanding emergency intervention measures from federal and state governments pending the conclusion of negotiations.
The unions argue that workers require immediate support to cushion the effects of inflation and economic hardship while discussions over a new wage structure continue.
Among the concerns raised are rising food insecurity, transportation challenges and increasing household expenses that continue to stretch family budgets.
Labour leaders warned that failure to provide short-term relief could increase frustration among workers and heighten industrial tensions nationwide.
Insecurity Threatens Productivity and Livelihoods
The Geneva conference also provided labour leaders with an opportunity to draw international attention to Nigeria’s worsening security situation.
According to the unions, insecurity has become a major threat to workers’ welfare, productivity and economic survival.
They cited incidents of killings, kidnappings and forced displacement affecting communities across the country.
Labour leaders claimed that nearly 2,000 people were killed during the first quarter of the year while millions of citizens have been displaced from their homes due to violence and insecurity.
The unions warned that deteriorating security conditions could eventually force workers to withdraw from economic activities for safety reasons, creating consequences that extend beyond conventional labour disputes.
Poverty Levels Raise Fresh Concerns
The labour movement also painted a grim picture of the nation’s socioeconomic condition, alleging that approximately 65 percent of Nigerians—estimated at about 150 million people—currently live in multidimensional poverty.
According to the unions, inflation, unemployment, job losses and declining purchasing power have combined to push more citizens into economic vulnerability.
While acknowledging ongoing economic reforms aimed at stabilising the economy, labour leaders argued that the benefits of such policies have yet to translate into improved living standards for ordinary Nigerians.
The statement reflects growing concerns among economists and civil society groups regarding the widening gap between macroeconomic indicators and household realities.
Labour Eyes 2027 Political Influence
In a move that could have significant political implications ahead of the 2027 elections, organised labour disclosed plans to develop a comprehensive charter of demands to guide its engagement with political actors.
The unions stated that their support would be influenced by commitments from candidates and political parties on critical issues affecting workers and citizens.
These include:
- Improved security
- Living wage implementation
- Protection of labour rights
- Functional healthcare systems
- Quality education
- Enhanced public services
The announcement suggests labour intends to play a more active role in shaping national policy discussions ahead of the next electoral cycle.
Concerns Over Union Independence
The NLC and TUC also expressed concern over what they described as interference in labour affairs by certain state governments.
The unions accused some authorities of attempting to undermine democratically elected labour leadership structures and weaken the independence of workers’ organisations.
Labour leaders vowed to resist any actions aimed at imposing external control over union activities, stressing that strong and independent labour institutions remain essential to protecting workers’ rights.
High-Stakes Negotiations Ahead
As the July 2026 review period approaches, attention is increasingly shifting toward what promises to be a critical negotiation between organised labour and government officials.
The outcome will likely determine whether millions of workers receive a significant adjustment capable of restoring lost purchasing power or continue struggling under mounting economic pressures.
Analysts note that the negotiations will test the government’s commitment to balancing fiscal realities with growing demands for social protection and improved living standards.
The decision by the NLC and TUC to reopen minimum wage negotiations reflects mounting concern over the economic pressures confronting Nigerian workers.
With inflation continuing to erode incomes, insecurity affecting livelihoods and poverty levels remaining high, labour leaders argue that only a genuine living wage can provide meaningful relief.
As both sides prepare for discussions in the coming weeks, the outcome of the negotiations could shape not only workers’ welfare but also the broader social and political landscape ahead of the 2027 general elections.
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