1m salary worthless without a stable naira, the Nigeria Labour Congress (NLC) has stated, warning that rising inflation and currency instability continue to erode the real value of workers’ earnings. The 1m salary worthless position highlights concerns that nominal wage increases alone cannot improve living standards without macroeconomic stability.
The Nigerian economy has faced sustained pressure from inflation and exchange rate volatility, affecting purchasing power across income levels. Wage adjustments have been a recurring demand from labour unions seeking to address rising living costs.
The NLC has consistently argued that salary increases must be supported by broader economic reforms, including currency stability and price control measures. Without these, nominal income growth may not translate into improved welfare for workers.
The Nigeria Labour Congress stated that a monthly income of ₦1 million would still be inadequate in the absence of a stable national currency, emphasising the impact of inflation on purchasing power.
According to the union, fluctuations in the value of the naira have significantly reduced the real value of earnings, making it difficult for workers to meet basic needs despite higher nominal salaries.
The NLC stressed that economic stability, particularly in the foreign exchange market, is critical to ensuring that wages retain their value over time. It noted that continuous depreciation of the naira leads to higher prices for goods and services, thereby weakening income effectiveness.
Labour leaders further indicated that addressing inflation and stabilising the currency should be prioritised alongside wage negotiations, as both factors are interconnected in determining workers’ real income levels.
The 1m salary worthless position underscores the broader challenge of balancing wage policy with macroeconomic stability. It highlights that salary increases alone may not address living cost pressures if inflation and currency depreciation persist.
For policymakers, the development reinforces the need for coordinated economic strategies that address exchange rate management, inflation control, and income growth simultaneously. For workers, the situation reflects ongoing concerns about declining purchasing power and the need for sustainable economic reforms.
