By Our Reporter
The Nigeria Labour Congress (NLC) President Joe Ajaero has stated that negotiations on minimum wage and pensions should go beyond just nominal figures and accurately reflect workers’ actual purchasing power amid increasing inflation, fuel prices, and food costs.
Ajaero spoke at the 2026 National Pre- Retirement Summit organized by XEM Consultants Limited, where he argued that any wage agreement ignoring the rising cost of living could quickly lose its value. “Negotiations are not just figures,” he said.
He emphasized that the cost of essential commodities must be factored in when determining workers’ wages. He pointed out that even a seemingly large salary could become insufficient if prices rise faster. “You can equally get one million naira and a bag of rice is ₦ 500, 000, so what of that? What happens?”
The NLC president also suggested linking wages and pensions to inflation or a cost- of- living index, as this would allow workers’ incomes to adjust according to changing economic conditions. “Unless you index it either based on a cost- of- living index or inflation, immediately inflation goes like this; automatically it will adjust to this,” he said.
Ajaero further argued that minimum pensions should be considered alongside minimum wages because pensioners are equally affected by rising living costs. He added that the three- year wage review cycle was designed to make wages more responsive to changing economic conditions.
He noted that the current minimum- wage agreement is expected to expire around March or April, so it’s necessary to begin negotiations early. “This minimum wage is supposed to expire March–April, so the conversation ought to start early. That’s a three- year cycle,” he said.
Additionally, Minister of Aviation and Aerospace Development Festus Keyamo said that the ₦ 70, 000 national minimum wage is no longer sufficient to withstand the economic pressures faced by workers. He urged the government to meet organized labor halfway in ongoing wage discussions, noting that unions were demanding as much as ₦ 500, 000.
With additional reports from Vanguard.