“The Nigerian labour market, like other sectors of the economy, witnessed dramatic changes following the introduction of the structural adjustment programmes (SAPs) in mid 1986. The labour market has a central role to play in the attainment of SAP objectives such as employment,income growth, and poverty reduction. In 1998 and 2000 the Federal Government implemented two jumbo salary increases which raised minimum salaries in the public sector. This had further implications for wages and employment in the formal sector of the economy. It then becomes necessary to understand the labour market process in the country. This study, focusing on the wage determination process, particularly in the manufacturing sector seeks to do this. Through this, it is possible to answer to the question: “Why would wages not adjust to equate labour supply to labour demand?””
