Workers grapple with worst cost-of-living crisis in a generation

As Nigeria joins the global community to commemorate this year’s International Workers’ Day, the celebration is overshadowed by the worst cost-of-living crisis in a generation. Despite recent adjustments to the minimum wage and promises of revised welfare packages, employees across both the public and private sectors report that their purchasing power is being eroded by double-digit inflation and a volatile economic landscape.

While the civil service remains the engine room for implementing government policies, poor welfare packages and harsh economic realities have begun to hinder statutory mandates. For many, the “dignity of labour” is currently being tested by the sheer cost of survival as the gap between earnings and basic needs widens for federal and state workers.

Public sector faces widening wage-expenditure gap

Mercy, a civil servant at the Federal Ministry of Education in Abuja, observed that the cost of essential services has outpaced any recent relief measures.

“Transportation and housing increased exponentially between last year and this year,” Mercy noted. “Also, the cost of food is fluctuating, as prices of food items are not stable. Fuel has increased by three times since then. The government increased transportation and housing by 25 percent to 30 percent.”

She highlighted the inconsistency of government intervention, stating: “Wage allowance of monthly N35,000 in addition to monthly salary was promised by the government in late 2024 to alleviate the pains, but they are not consistent with the payment. They have only fulfilled it five of six times. They promised a consolidated salary, but we are still waiting.”

Lagos workers struggle with rising overheads

In Lagos, the situation is equally precarious. Doyin, a worker with the Lagos State Government, explained that while the state pays N85,000 as minimum wage, it remains insufficient against rising overheads.

“Previously, N900 would take me to the office, but it has risen to N1,300 now,” Doyin said, adding that housing costs are becoming unsustainable. “Rent used to be N500,000, but the landlord increased it to N800,000 with plenty ‘abeg’.”

The sentiment was echoed by Charles Onuama, a civil servant, who lamented the impact of transport costs: “Going with the hike for transport alone takes everything, so it hasn’t been easy for us.” In the private sector, employees are facing similar inflationary pressures with even fewer safety nets.

Private sector employees grapple with zero-sum increments

Daniel Jatto, a chemical process specialist at Solenis-Diversey in Sagamu, reported that his general expenses have surged by 100 per cent, creating a substantial economic burden. He highlighted that despite a 30 percent rise in local rent and increased transport costs, “there has been no corresponding salary increment or additional allowances provided by the company to help offset these costs.”

Even those with perceived advantages are feeling the pinch. Chinasa Ehirim, a marketing executive for a medical orthopaedic implants company in Lagos, earns N200,000 monthly. Although her company provides accommodation on its premises, eliminating the need for a commute, she lamented that the rising cost of field marketing continues to diminish her take-home pay once company allowances are exhausted.

Pensioners demand an end to staggered payments

The crisis extends into retirement. In Ondo State, pensioners have appealed to the government to accelerate the payment of gratuity arrears. Johnson Osunyemi, chairman of the Ondo State Council of the Nigeria Union of Pensioners (NUP), acknowledged that while Governor Lucky Aiyedatiwa has cleared backlogs for 2015 and 2016, the scale of payment must increase.

“I don’t want the old system of staggered payments,” Osunyemi said. “If the government owes you N7 million, you should get your N7 million once. The Governor said he is going to defray everything before he left office, and he has started doing it.”

Geopolitical shocks and the path to systemic relief

Addressing the root causes of these hardships, Aladetan Abiodun, chairman of the Trade Union Congress (TUC) in Lagos State, pointed to global geopolitical instability as a major factor.

“One of the major factors that gave a devastating blow to the purchasing power of the Nigerian worker, apart from the fuel subsidy removal, is the recent war between Iran, the US, and Israel,” Abiodun stated.

“This disruption has led to a sharp rise in oil prices and transportation costs worldwide, with ripple effects on food, manufacturing, and basic services,” Abiodun added. He assured members that the TUC is actively engaging with the Lagos State Government and relevant stakeholders to ensure that adequate measures are put in place to cushion the effects on workers.

Civil service leadership promises morale booster

Amidst the gloom, Didi Walson-Jack, the head of civil service, recently noted that the present administration has approved an upward review of allowances, including duty tour allowances and housing loans, to act as a morale booster.

In response, David Ebiebor, chairman of the Radio, Television, Theatre and Arts Workers Union of Nigeria (RATTAWU) in Bayelsa State, noted that workers are holding out hope.

“Workers are battling to meet up with the current economic situation, so if the allowances are implemented, it will be a good one for us,” he said. While these reviews are set to take effect in October 2026, the Nigerian workforce remains in a state of expectant hope.