SALARY INCREMENT AND INCREASED POVERTY AMONG WORKERS: A COMPREHENSIVE EVALUATION OF NIGERIA'S 2024 SALARY INCREMENT

Abstract

Generally, workers regard salary as a vital component of life, as their wellbeing depends on the 
remuneration they receive. Therefore, it serves as a means of obtaining both essential goods and 
services, as well as luxuries. Nonetheless, salary increments in Nigeria have consistently further 
impoverished workers, prompting their ongoing agitation for upward reviews. This study examines 
the causes of workers’ increased poverty despite the implementation of a new minimum wage by 
President Bola Tinubu’s Administration, which raised it from ₦30,000 to ₦70,000, alongside 
subsequent upward reviews for those earning above the minimum. Utilising Economic Liberalism 
as its theoretical framework and analysing qualitative data obtained from both primary 
(interviews) and secondary (published journal articles) sources, the study concludes that the 
implementation of the floating exchange rate system for the Naira, increases in petrol prices, and 
hikes in electricity tariffs for Band-A customers (primarily manufacturers) have significantly 
contributed to inflation in the country. This negatively affects the purchasing power of workers, 
leading to their impoverishment. Based on this finding, the paper recommends, among other 
suggestions, that when reviewing workers’ salaries, the government should take into account the 
Naira’s value against other foreign currencies and the prevailing economic conditions of the 
country.