Workers Face Wage Compliance Gaps As TUC, NLC Press For Better Pay & Pensions

By BIMBO ADEYEMI
Labour Disagrees Over Government’s ₦70,000 Transport Intervention
ORGANISED labour has expressed differing views on the Federal Government’s proposed ₦70,000 monthly transport support, even as the demand for a ₦500,000 minimum wage remains on the table.
The Trade Union Congress of Nigeria (TUC) has rejected the proposed intervention, arguing that temporary assistance cannot adequately address the financial pressures confronting Nigerian workers. Rather, it wants the government to increase salaries immediately and honour outstanding agreements with health workers.
In a statement signed by its President, Festus Osifo, and Secretary-General, Nuhu Toro, the congress cited the incomplete implementation of the 2023 wage award as evidence that workers have reasons to question fresh government promises.
The TUC further argued that the government does not need to wait for another minimum wage negotiation before improving salaries. It explained that the statutory minimum wage represents the lowest permissible wage, not a limit on how much government can pay its employees.
Consequently, the congress proposed an immediate increase in the salaries of the lowest-paid government workers to ₦300,000. It also demanded corresponding adjustments across other salary levels to preserve the existing pay structure.
The TUC said some states had already raised their minimum wages above ₦100,000. It disclosed that it submitted its demands to the Federal Government in a letter dated 8 October 2026, after a meeting of its National Administrative Council in Abuja.
Beyond salary increases, the congress urged all levels of government to introduce measurable measures to reduce the cost of essential goods and services. It also called for prompt payment of salaries and pensions, protection of existing jobs and stronger action against exploitative labour practices.
Labour Negotiator Says ₦70,000 Support Is a Positive Outcome
In contrast, Gbenga Olowoyo, National Secretary of the Joint National Public Service Negotiating Council (JNPSNC), welcomed the proposed ₦70,000 transport support. Nevertheless, he insisted that labour’s ₦500,000 minimum wage demand remained valid.
Olowoyo spoke during an interview on Arise News after organised labour and the Federal Government concluded a meeting that lasted more than six hours. The discussions focused on workers’ welfare and measures to cushion the effects of rising petrol prices.
He described the agreement to provide ₦70,000 monthly for six months, beginning next month, as a positive outcome. According to him, the intervention would cover workers at different levels, including those in grassroots communities.
However, Olowoyo emphasised that organised labour remained open to reasonable negotiations. He said the congress would consider an agreement that could improve workers’ welfare rather than insist rigidly on one position.
ActionAid, NLC Identify Weak Minimum Wage Implementation
While labour continues to debate the proposed support, ActionAid Nigeria and the Nigeria Labour Congress have drawn attention to another major concern: the incomplete implementation of the existing ₦70,000 minimum wage.
Their joint study on minimum wage and pension compliance found that implementation stood at 67 per cent across states and 48 per cent at the local government level.
Although many states had fully implemented or exceeded the statutory minimum, the assessment identified gaps in Zamfara and Yobe, particularly in local councils and schools. It also found evidence of partial compliance in Ondo, Imo, Edo, Bauchi and Kano.
Furthermore, the report highlighted discrepancies in some local councils and private-sector establishments, even where governments had announced that the new wage was in force.
ActionAid Nigeria Country Director Andrew Mamedu said poor implementation remained one of the major challenges associated with minimum wage adjustments. He explained that the organisation partnered with the NLC to assess compliance and examine lessons from the 2024 wage adjustment ahead of the next negotiations.
Mamedu clarified that the ₦70,000 minimum wage applied to workers on Grade Level One, Step One. Therefore, employers should make consequential adjustments to maintain appropriate differences across other grades and steps.
Pension Liabilities Add to Workers’ Welfare Concerns
The assessment also raised concerns about pension compliance, especially in the organised private sector and private schools.
According to the findings, compliance with the Contributory Pension Scheme was fully operational in the public sector. However, it fell below 20 per cent in the organised private sector and reached approximately 70 per cent in private schools.
The report further estimated outstanding pension and gratuity liabilities across the 36 states and the Federal Capital Territory at ₦626.8 billion. This came despite the states and FCT receiving ₦5.36 trillion in 2024.
Against this backdrop, NLC President Joe Ajaero urged the government and organised labour to begin negotiations for a new minimum wage immediately. He argued that early engagement would allow enough time to reach an agreement before the next review falls due in April.
Ajaero recalled that the 2024 National Minimum Wage Act increased the statutory wage from ₦30,000 to ₦70,000 and reduced the review period from five years to three years without changing the implementation date.
Ultimately, the competing positions and compliance findings point to wider questions about workers’ purchasing power, wage enforcement and pension security. As inflation, fuel costs and currency depreciation continue to affect household finances, labour organisations are pressing for more than temporary relief. They want enforceable wage commitments and a stronger framework for protecting workers’ earnings and retirement benefits.

