— Tinubu To Review Minimum Wage Every Three Years
— Lagos Workers Will Enjoy Best Welfare In Nigeria – Sanwo-Olu
After months of negotiations and rejected proposals, the Federal Government, Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC) have finally reached an agreement on a new national minimum wage.
President Bola Tinubu on Thursday approved N70,000 as minimum wage for Nigerian workers. The new wage represents a 12 per cent increase from the previously proposed N62,000.
However, as the nation prepares for implementation, governors across 36 states are now confronted with the task of aligning their budgets with the revised wage structure and ensure compliance.
Initially, the labour unions demanded N494,000 monthly wage, citing the rising cost of living and economic hardships faced by workers.
The proposal was, however, deemed unsustainable by the Federal Government, which argued it could destabilise the economy and jeopardise the welfare of over 200 million Nigerians.
Negotiations went on, with the government offering N62,000, which was promptly rejected by the labour unions. The deadlock persisted until President Tinubu intervened by hosting two meetings with labour leaders within a week.
After the last meeting on Thursday, the presidency announced N70,000 as the new minimum wage agreed upon by the government, NLC and TUC, along with additional incentives.
The President’s Special Adviser on Media and Strategy, Bayo Onanuga, said Tinubu also promised to find ways to assist the private sector and sub-national governments in implementing the new wage structure.
He said the president further committed to using his discretionary powers to address the demands of university unions for unpaid salaries over four months.
The labour leaders, led by NLC President Comrade Joe Ajaero and TUC President Comrade Festus Usifo, accepted the offer, citing the additional incentives as a key factor in their decision.
Notably, the agreement includes a provision for the N70,000 wage to be reviewed every three years to ensure it remains responsive to economic changes.
“The amount of N70,000 happens to be where we are now. But the good thing about it is that it will not wait for another five years to come for review.
“Rather than settling on a figure that we wait for five years, we’ll have to now negotiate even two times within five years, with a view to going up.
“That is one of the reasons we decided to reach where we are today. Because of the proviso that we can review in the next three years,” said Ajaero.
He also spoke on strike embarked upon on Thursday by the Joint Action Committee of the Senior Staff Association of Nigerian Universities and the Non-Academic Staff Union of Educational and Associated Institutions.
Ajaero said Tinubu had asked the agencies concerned to work out the modalities for the payment of those workers in the universities.
NewsNGR, however, reports that the government now faces the task of ensuring smooth implementation across both public and private sectors, while also managing the economic implications of the wage increase.
The agreement, while a victory for workers, comes amidst economic challenges and growing concerns over Nigeria’s rising debt profile.
The wage increase came a day after President Tinubu made a request to the National Assembly to raise the 2024 budget by N6.2tn, increasing it to N34.9tn.
As of March 2024, Nigeria’s total public debt stood at over N121tn, a 19.8 per cent increase from December 2023. The proposed budget increase, if approved, may further inflate this figure. Experts warn that higher debt servicing costs could divert resources from key sectors like health, education, and infrastructure.
GOVERNORS REACT
NewsNGR reached out to spokespersons of some governors and the responses received indicate varying levels of preparedness concerning the implementation of a new minimum wage.
The Nigerian Governors’ Forum (NGF) had previously rejected the proposed N62,000 minimum wage, citing financial constraints.
Similarly, the Association of Local Governments of Nigeria (ALGON) expressed doubts about their ability to pay the initially proposed amount.
Adopting a cautious stance to the newly announced wage, the Imo State Commissioner for Information, Declan Emelumba, told NewsNGR, “The State Government is studying the approved new minimum wage of N70,000 by the President, Bola Ahmed Tinubu and will discuss with the Labour leaders in the state before arriving at a decision.”
Also speaking with NewsNGR, the Rivers State Commissioner for Information, Joe Johnson, said it was too early to comment on the government’s position. However, he recalled that on Workers’ Day, Governor Siminalayi Fubara had pledged to comply with whatever figure the federal government proposed as minimum wage.
Osun State has, however, taken a position. The Information Commissioner Kolapo Alimi told our correspondent, “Our governor is a lover of workers. Governor Ademola Adeleke will not be among the defaulters of the new minimum wage,” stressing that the new wage will be legally binding across all sectors.
Lagos State, through Governor Babajide Sanwo-Olu’s office, promised to issue a statement on the development, while Rafiu Ajakaye, Chief Press Secretary to Governor AbdulRahman AbdulRasaq informed NewsNGR that “no policy position has been taken” by the Kwara State government.
Meanwhile, in a Facebook post late Thursday, Babajide Sanwo-Olu expressed optimism about the progress made with organised labour.
“I’m particularly happy to note that considerable progress has been made towards a mutually acceptable solution between the Federal Government and the Organised Labour.
“We have made it a priority to ensure that the welfare of our workforce in our dear Lagos State is the best in the country. We understand the economic realities on the ground and will continue to do all we can to provide a dignified standard of living for all our workers.
“The strength of our economy lies in the well-being of our workforce, and we will continue to build an agile and resilient workforce that can meet the challenges of the future. Together, we will create an environment where every worker can thrive and contribute to the growth and prosperity of Lagos.
— Additional reporting by Ikenna OMEJE, Chukwudi JAMES, David ADEDEJI, and Nelson OBINNA.