Labour’s Next Battlefield: Inside the NLC’s Minimum Wage Mission
In June 2025, the Nigerian Labour Congress (NLC) announced its intention to crack down on private sector employers who fail to comply with the national minimum wage. While this declaration may seem like a straightforward defence of workers’ rights, it unveils a deeper and more complex legal landscape that spans human rights, employment law, and business regulations.
This article provides a well-rounded examination of the issue by exploring the legal framework underpinning wage enforcement in Nigeria, the historical journey of minimum wage regulation, the challenges faced by employers, and the broader human rights implications. In doing so, it seeks to remain neutral and reflective, offering clarity to stakeholders navigating this dynamic legal and socio-economic issue.
Understanding the Legal Basis of the Minimum Wage in Nigeria
Minimum wage obligations in Nigeria are governed by both statutory provisions and constitutional ideals. The cornerstone legislation is the National Minimum Wage Act, 2019 (as amended), which mandates that every employer with more than 25 employees must pay wages not less than the national minimum wage, which currently stands at ₦30,000, subject to ongoing negotiations in 2025.
This statutory duty is underscored by the 1999 Constitution of the Federal Republic of Nigeria (as amended), specifically Section 17(3)(a), which commits the Nigerian state to the principle of “equal pay for equal work without discrimination.” Although the provision is not justiciable in the strictest legal sense, it serves as a moral compass and policy directive in labour-related matters.
Additionally, Nigeria is a signatory to several International Labour Organisation (ILO) conventions, including Convention No. 131 on Minimum Wage Fixing, which obligates member states to establish and maintain systems that ensure fair remuneration for workers. These legal instruments, both local and international, form the foundation upon which the NLC builds its advocacy for wage compliance.
The Role of the NLC: Legality of the Crackdown
The Nigerian Labour Congress operates as a registered trade union federation under the Trade Unions Act. While it does not possess statutory enforcement powers akin to courts or executive regulatory agencies, it has historically played a significant role in shaping policy and influencing employer behaviour through organised actions.
The NLC’s intended crackdown on non-compliant employers is within its organisational rights under Section 40 of the 1999 Constitution, which guarantees the freedom of association, including the right to join or form trade unions. However, this right is not absolute. The union must act within the boundaries of the law. Any form of picketing or protest that becomes violent, obstructive, or disruptive to lawful business operations could potentially attract legal sanctions.
Enforcement of the minimum wage is more appropriately carried out through statutory channels such as the National Industrial Court of Nigeria (NICN) or the Federal Ministry of Labour and Employment. In some instances, human rights institutions such as the National Human Rights Commission may become involved where workers’ dignity or rights are demonstrably violated. Therefore, while the NLC may lead the campaign, it must collaborate with lawful agencies to effect sustainable change.
Historical Context: From Colonial Labour Codes to 2025 Wage Tensions
Nigeria’s wage regulation history is deeply rooted in colonial labour structures and post-independence socio-economic reforms. During the colonial period, wage structures were racially discriminatory, with expatriates earning significantly more than indigenous workers for similar roles. This disparity triggered early trade union movements in the 1940s, which laid the groundwork for organised labour activism.
One significant post-independence reform was the Udoji Commission of 1974, which culminated in the Udoji Awards of 1978. These reforms standardised public service wages and indirectly influenced wage expectations in the private sector. In 1981, Nigeria passed its first Minimum Wage Act, under President Shehu Shagari, setting a precedent for wage regulation.
Subsequent amendments in the 2000s reflected growing concerns about inflation, productivity, and equity. In 2011 and again in 2019, minimum wages were reviewed upwards to ₦18,000 and ₦30,000 respectively. However, enforcement has consistently remained a challenge particularly in the informal sector and among small and medium enterprises (SMEs).
The year 2025 presents a new dimension of complexity. The economic landscape is shaped by recent policy shifts such as the removal of fuel subsidies, persistent inflation, and currency devaluation. These factors form the backdrop against which the NLC’s renewed pressure campaign must be evaluated.
Legal Challenges Faced by Employers in the Private Sector
Employers in the private sector, particularly those in Nigeria’s informal economy, face a range of challenges in complying with the minimum wage law. Although the legislation is clear in its expectations, implementation is often hindered by structural and commercial obstacles.
Firstly, not all businesses are subject to the minimum wage law. Companies that employ fewer than 25 persons are exempt from the provisions of the Act. However, determining an employer’s compliance status can be contentious, especially when employment arrangements are disguised through casualisation or outsourcing.
Secondly, in larger organisations, employers often struggle to reconcile internal wage structures with national minimum wage requirements. Companies with multiple levels of pay grades sometimes find it difficult to adjust all levels without triggering wage inflation or internal discontent.
Another major challenge is the economic viability of wage compliance. Many SMEs, especially those operating in sectors with weak capital inflows, find it difficult to consistently pay even the minimum wage. Nevertheless, the law makes no exception for financial hardship unless a business is formally declared insolvent or liquidated.
Non-compliance comes with legal risks. The National Minimum Wage Act prescribes a fine of up to ₦75,000 for a first-time offence and the possibility of a custodial sentence for repeat offenders. These sanctions underscore the importance of proactive legal compliance by employers, including regular audits of employment contracts and payroll systems.
Human Rights Dimension: Minimum Wage as a Socio-Economic Right
The issue of minimum wage compliance is not just a legal or economic matter; it is a human rights concern. The African Charter on Human and Peoples’ Rights, which has been domesticated into Nigerian law, affirms the right of every worker to receive remuneration that ensures a decent standard of living.
This right is closely linked to the dignity of the human person, which is protected under Section 34 of the Constitution. When workers are paid below subsistence levels, it undermines their dignity and limits their access to basic needs such as food, shelter, education, and healthcare.
The issue also has a gender component. In many sectors of the economy, especially the informal ones, women are more likely to be underpaid or excluded from formal employment protections. This reality contributes to wage inequality and reinforces systemic discrimination, contrary to the equality provisions of the Constitution and international human rights treaties.
Thus, the enforcement of the minimum wage transcends labour rights—it is a critical part of Nigeria’s commitment to economic justice, gender equity, and the protection of vulnerable populations.
Practical Way Forward: Balancing Compliance and Commercial Viability
A balanced approach is needed to ensure that wage compliance does not become a zero-sum game between employers and employees. Solutions must be collaborative and forward-thinking.
Legal sensitisation is an important first step. Many employers—particularly in the informal sector—are unaware of the 25-employee threshold or the steps required to comply with the law. Government agencies, professional associations, and civil society should work together to promote public education and employer awareness.
Moreover, dialogue between the public and private sectors is crucial. A multi-stakeholder policy forum involving labour unions, business leaders, and government representatives can facilitate the negotiation of realistic wage benchmarks and phased implementation for vulnerable industries.
There is also a need to create incentives for compliance. Regulatory bodies could explore tax waivers, capacity-building programmes, or public recognition for compliant employers, thereby fostering a culture of voluntary adherence to labour standards.
Finally, enforcement should become more institutionalised and less adversarial. Rather than rely solely on union crackdowns, the government could introduce structured compliance audits similar to tax inspections, ensuring fairness and consistency in application.
Conclusion
The ongoing national conversation on minimum wage enforcement is a critical one. It touches on constitutional promises, international obligations, historical struggles, and present-day economic realities. While the Nigerian Labour Congress is well within its rights to lead advocacy efforts, it must operate within the rule of law. Likewise, employers must understand that minimum wage compliance is not a matter of goodwill but of legal duty.
Moving forward, there must be a commitment from all parties,government, labour, and business. To find common ground. Only then can Nigeria build a truly equitable labour market, one that respects the dignity of workers while safeguarding the survival and competitiveness of private enterprises.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
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