Minimum Wage Increase in Nigeria Overshadowed by Electricity Price Hikes: Workers Struggle to Keep Up

The announcement by the Federal Government of Nigeria in September to begin paying the proposed minimum wage of N70,000 did not excite many Nigerians. The government also committed to paying civil servants the arrears from July and August. However, the increase in the minimum wage was overshadowed by a recent hike in electricity costs, which has raised concerns about its actual impact on workers' living standards.

According to a recent report citing data from the Foundation for Investigative Journalism (FIJ), minimum wage earners who use just seven appliances still spend at least 57.3% of their income on electricity. Although the wage increase is a positive development, the report argues that it has become nearly meaningless due to the escalating cost of living, especially the cost of electricity.

The report highlights how electricity expenses alone are affecting workers' paychecks. A National Income, Salaries, and Wages Commission (NISWC) document indicates that civil servants would earn N930,000 annually under the Consolidated Public Service Salary Structure, which translates to a monthly wage of approximately N77,500.

In April, the Nigerian Electricity Regulatory Commission (NERC) announced a 300% increase in electricity costs for consumers in the B and A service categories. NERC Vice Chairman Musliu Oseni stated that customers who previously paid N66 per kilowatt-hour would now be charged N225 for the same unit of energy. The commission added that only those in the Band A service category, representing roughly 15% of all customers, would be affected.

Despite this, many Nigerians found themselves abruptly shifted to the Band A category a few months later, leading to widespread dissatisfaction. Some voiced their frustrations on social media, including financial expert Joe Abah. On his X (formerly Twitter) account, he wrote: "I have confirmation that @aedcelectricity has now put me in Band A with no notice at all. So, N100,000 electricity top-up now lasts just seven days. I have been paying. Who has a gadget that can help me monitor whether I am getting a minimum of 20 hours of light a day, please?"