The Nigeria Labour Congress (NLC) suggested a new monthly minimum salary of N615,000, citing acute economic issues and a dramatic increase in living expenses across the country.
However, many people are sceptical of the NLC’s proposal for a minimum salary of N615,000 per month, claiming that it ignores Nigeria’s economic reality.
According to Dataphyte, demand exceeds the earning potential of people in a lower middle-class country like Nigeria. Income categorization is frequently determined using a country’s Gross National Income (GNI) per capita.
This indicates the range of income that employees in an economy obtain. Nigeria’s GDP per capita ranges between $1,136 and $4,465, classifying it as a lower middle-income economy.
The monthly income range for lower-middle-income countries like Nigeria is N118,547 to N464,100. Workers should expect something closer to the midpoint, at N291,380 per month.
According to the World Bank, middle-income countries have modest economic development. These countries frequently experience fast urbanisation and face issues such as income disparity, restricted access to healthcare and education, and infrastructural deficiencies.
The NLC’s plan goes beyond these established limitations, drawing opposition from the organised business sector and states. They claim that adopting such a large pay increase will strain economic resources and upset established financial arrangements.
The desire for a higher minimum wage stems from rising living costs. However, the country’s general income levels limit the desire for a salary increase that corresponds to the inflation rate.
However, given the country’s economic reality, any minimum salary less than N118,547 is too low, and any pay increase greater than N464,100 may be unaffordable for employers of labour in the private and public sectors. Which is tantamount to saying that, the NLC’s push for N615,000 is not realisable.