Market News

By Justice Okamgba

Nigeria’s workers are dealing with what the Nigeria Labour Congress describes as the most severe financial squeeze in the country’s history. The warning, issued on Tuesday, came a day after the National Bureau of Statistics reported a modest easing of headline inflation.

The NBS said the Consumer Price Index rose to 130.5 points in November 2025 from 128.9 points in October, a month-on-month increase of 1.6 points. The annual headline inflation rate fell to 14.45 per cent from 16.05 per cent in October. While this decline has been welcomed by some in the organised private sector as a potential boost to consumer purchasing power, for workers on stagnant wages the relief is limited.

President of the NLC, Comrade Joe Ajaero, painted a grim picture, stressing that financial insecurity among Nigerian workers exceeds the hardships of the civil war and past austerity measures, placing them at the “bottom of the ladder” even compared with peers in countries wracked by conflict, including Somalia and Sudan.

“The basic requirement of survival is that a person must eat,” Ajaero said. “When a worker’s job does not provide sufficient income to meet even basic needs, survival becomes a daily struggle. This has led to extreme stress, insecurity, and little hope for savings, asset accumulation, or long-term stability.”

The NLC emphasised that financial insecurity for Nigerian workers is compounded by general physical insecurity across the country, including terrorism, banditry, and kidnappings, creating a mutually reinforcing cycle of vulnerability.

Fuel affordability remains a major concern. Nigerians continue to struggle despite Dangote Petroleum’s recent reduction of petrol prices from N828 to N699 per litre. The removal of the fuel subsidy by President Bola Tinubu in 2023 has driven transport fares and living costs higher, while devaluation of the naira has further weakened workers’ purchasing power. While the subsidy removal aimed to raise government revenue for infrastructure and public services, it has led to higher everyday expenses, particularly in transportation, worsening conditions for workers across the country.

The labour body noted that inflation has continued to erode purchasing power, with Nigeria’s inflation rate reportedly above 30 per cent in 2024. Real wages have stagnated, particularly in the public sector and many private firms, while the national minimum wage of N70,000 remains grossly inadequate for meeting basic needs. With prices of essential goods such as rice exceeding the minimum wage, workers are left struggling to make ends meet.

Currency depreciation has further worsened the situation, increasing the cost of imported goods, fuel, and services. Workers have also been hit by sharp increases in transportation costs and fuel prices, which directly affect the prices of all goods and services. Food inflation has made adequate nutrition increasingly inaccessible, consuming as much as 80 per cent of the average worker’s monthly income.

High levels of unemployment and underemployment have created a large pool of low-paying informal jobs, often without security or benefits. Social safety nets remain weak or non-existent, with inadequate unemployment benefits, limited health insurance coverage, and insufficient pensions, particularly for those in the informal sector. Even contributory pensions in the formal sector are often undermined by low contributions and economic volatility.

Housing and transportation costs remain significant burdens, forcing many workers into long commutes or even temporary stays near their workplaces to save money. Statutory deductions, rising electricity and telecom tariffs, tolls, and other costs have further eroded take-home pay, leaving workers with little disposable income.

Ajaero also highlighted the challenges posed by poor public infrastructure, forcing workers to spend large portions of their earnings on alternative power sources, water, security, and private healthcare. In regions affected by conflict and terrorism, livelihoods are disrupted, families displaced, and assets destroyed, pushing workers further into poverty.

“Skyrocketing inflation, a depreciating currency, and stagnant wages have decimated purchasing power,” the NLC president said. “Coupled with the high costs of essentials, job insecurity, and the need to self-fund basic services, Nigerian workers are caught in a relentless squeeze. Saving or investing for the future has become a luxury, while daily survival is the priority.”

The NLC called on the government to take urgent measures to stabilise the economy, raise real incomes, and strengthen social protections to address the worsening financial insecurity faced by Nigerian workers.