The Nigerian government has announced a major policy change regarding the review of the country’s minimum wage. Moving forward, the minimum wage will be reviewed every two years instead of the previous five-year interval. This adjustment is part of the government’s effort to address economic realities and provide better support for workers.

The Minister of State for Labour and Employment, Nkeiruka Onyejeocha, shared this development during a visit to Abia State. She explained that the decision aligns with President Bola Tinubu’s commitment to prioritizing workers’ welfare and ensuring their wages reflect current economic conditions.

“We are not going to allow the minimum wage review to take forever. It used to take about five years, but now, in less than two years, we will review it again,” Onyejeocha said.

The decision to shorten the review timeline is a response to the economic challenges faced by Nigerian workers, particularly the impact of rising inflation. Inflation in Nigeria hit 34.6% in November 2024, eroding the purchasing power of the current minimum wage of ₦70,000.

The Trade Union Congress (TUC) and other labor groups had recently called for yearly reviews to ensure wages keep pace with the increasing cost of living. While the government has not yet agreed to annual reviews, reducing the interval to two years is seen as a significant step in addressing workers’ concerns.

In 2023, President Bola Tinubu approved a new minimum wage of ₦70,000, with a promise to review it every three years. This recent change to a two-year review cycle further emphasizes the administration’s commitment to supporting workers during challenging economic times.

By adopting this policy, the government hopes to ease the financial burden on workers and demonstrate its dedication to their well-being.

Nigeria’s inflation rate has been a major factor in driving this policy change. High inflation has significantly increased the cost of living, making it difficult for workers to afford basic necessities.

With food prices, housing, and transportation costs rising sharply, the current minimum wage is no longer sufficient for many Nigerians. Frequent reviews will allow the government to make necessary adjustments to ensure workers’ salaries can meet their needs.

The two-year review period is expected to provide workers with more frequent wage adjustments, ensuring their earnings reflect current economic realities. It also indicates the government’s willingness to listen to labor unions and address their concerns.

However, the success of this policy will depend on its implementation. Workers and labor unions will be watching closely to ensure the government delivers on its promises.