New data from the Central Bank of Nigeria (CBN) shows that Nigerian workers became significantly poorer in 2024, losing about $1.97 billion in purchasing power, even as wages rose and the government rolled out new tax reforms promising relief.
According to the CBN’s GDP by Income figures, the real value of workers’ earnings fell from ₦28.27 trillion in 2023 to ₦25.48 trillion in 2024. That represents a 9.85 percent drop after adjusting for inflation, translating to a real income loss of about ₦2.79 trillion in just one year.
This happened despite an increase in nominal wages. Official records show that workers’ total earnings rose by 18.43 percent to ₦75.59 trillion in 2024, supported in part by the introduction of a ₦70,000 national minimum wage midway through the year. On paper, Nigerians earned more. In reality, they could afford far less.
Economists say the gap between earnings and living standards was driven by inflation that averaged above 30 percent, the sharp fall in the naira, and rising costs of food, fuel, transport, rent, and medicine. For many households, price increases moved faster than any pay adjustment.
The data also complicates government claims around tax reforms. Officials have said that new tax laws are boosting workers’ disposable income by allowing them to take home more pay. While deductions may have reduced for some workers, the CBN figures show that any tax relief was overwhelmed by inflation, meaning workers lost purchasing power overall.
In simple terms, taking home slightly more money did not matter when prices rose much faster. A worker earning more naira in 2024 was often worse off than in 2023.
The erosion of real income is now colliding with another reality: many workers are not even being paid on time. Across the country, strikes have broken out as salary delays stretch from weeks into months. In Abuja, workers under the Federal Capital Territory Administration have shut down offices over unpaid wages, defying court orders to return to work.
Health workers are also sounding the alarm. Resident doctors have issued ultimatums over outstanding salaries, warning that chronic delays are pushing professionals out of public service and threatening patient care.
For workers, the experience is blunt and personal. Higher pay figures do not cover rent hikes, transport fares, school fees, or food costs. Salary delays mean borrowing to survive, skipping meals, or falling behind on rent. The result is a workforce that is technically earning more but living with less security.
This combination of falling purchasing power and delayed salaries is feeding household debt, evictions, and growing frustration. It also explains why labour unrest is spreading even in sectors where wages were recently adjusted. Nigeria’s labor crisis is no longer just about how much workers earn. It is about whether earnings still mean anything at all.
