The National Assembly will Tuesday get an executive bill on the new national minimum wage following an agreement between President Bola Tinubu and labour leaders on higher remuneration for workers.
On Thursday, the President and the Nigeria Labour Congress and the Trade Union Congress of Nigeria led by their presidents, Joe Ajaero and Festus Osifo, respectively, agreed on N70,000 as the new national minimum wage during their meeting at the Aso Presidential Villa, Abuja.
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The wage will replace the N30,000 minimum wage that expired on April 18, 2024.
To give legal teeth to the agreement ahead of its implementation, the Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, confirmed to one of our correspondents that the lawmakers would get the executive bill on the new minimum wage by Tuesday.
He said, “The minimum wage will reach the National Assembly by Tuesday. He (President Tinubu) told labour in the meeting that it will be ready by Tuesday.”
Announcing the new wage benchmark, the President said, “I have heard all your presentations. You came here with the intention to get something on behalf of your members. If you review my track record, I have never been found wanting to ameliorate the problems of workers. I belong to the people and all of you in leadership.
“We are driving this economy together. Let us look at the tenure of review. Let us agree on that, and affirm three years. Two years is too short. We affirm three years. We will review it.
“I am going to move from the tripartite committee. I am going to edge a little bit forward, looking at the review that we have done. Yes, no one in the federal establishment should earn less than N70,000. So, we are going to benchmark at N70,000.”
The Tripartite Committee on the New National Minimum Wage set up in January had submitted two separate figures to the President following a disagreement among the stakeholders.
While the government team and the organised private sector proposed N62,000, organised labour demanded N250,000.
On receiving the committee’s report, the President asked for more time to consult the relevant stakeholders to harmonise the figures before transmitting an executive bill to the National Assembly.
Subsequently, he held meetings with the organised private sector and the sub-nationals on a nationally acceptable minimum wage.
Last week Thursday, the President met with the NLC and TUC leadership but the meeting could not reach a consensus and it was postponed by one week.
Briefing State House correspondents after the President’s session with the union leaders on Thursday, the Minister of Information and National Orientation, Mohammed Idris, described the conclusion of the meeting as “A happy day for Nigeria.”
Besides the minimum wage agreement, he disclosed that the government had also agreed to pay the withheld salaries of the Senior Staff Association of Nigerian Universities and the Non-Academic Staff Union of Universities.
The government further pledged massive investments in infrastructure and renewable energy, including the acquisition of more CNG buses to enhance the nation’s transition to cleaner energy, as well as expressing commitment to ensuring local government autonomy.
Idris noted, “Today’s a happy day for Nigeria. You’ll recall that last week we had a meeting here and the organised private sector. The sub-nationals have also held their various meetings with Mr President following the submission of the tripartite agreement to Mr President.
“Labour came last week. They had meetings with Mr President. They asked for an adjournment for a week to go and consult further. They did those consultations. They have come back today and we have met with Mr President.
“We’re happy to announce today that both the Federal Government and organised labour have agreed on an increase on the N62,000 minimum wage.
The new national minimum wage that we expect Mr President to submit to the National Assembly for legislation is N70,000. But that is not all. There is also a boost, as Mr President has assured, in ensuring that massive investment is going to be made in the area of infrastructure. ‘’
Speaking further, the minister reeled out other programmes that would be implemented by the government.
“There is also a deepening of the investment of the Federal Government in renewable energy. More money is going to go into the acquisition of more CNG (Compressed Natural Gas) buses. Nigeria is going to be more CNG compliant, according to the President.
“We’re moving in this transition to renewable and all other things that Mr President has assured Labour. The issue of SSANU (Senior Staff Association of Nigerian Universities) and NASU(the Non-Academic Staff Union ) is also going to be looked at,’’ Idris announced.
He lauded the labour leaders for their patriotism, saying, “We are happy. We are very thankful for the role that organised labour has played today. They recognised the Federal Government’s role in ensuring that we have local government autonomy, in also ensuring that both organised labour and the government are on the same page today.
“They have seen the magnanimity of the President and today the leadership of Labour said they didn’t come here for negotiation, not at all. They came here in their deep sense of patriotism to ensure that Nigeria remains united, Nigeria becomes more prosperous.’’
Continuing, he added, “It is in that spirit that they agree with what the Federal Government has done today. We want to thank Labour for their patriotism. We also want to thank Mr President, the Federal Government, the sub-nationals and the organised private sector for going through this painstaking effort, by also ensuring that at the end of the day, Nigeria is the winner for it all.”
Also speaking, the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, said Tinubu adopted a fatherly approach, emphasising the need for a review of the minimum wage policy every three years, rather than the current five-year cycle.
She further hinted that the President also directed the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Minister of Budget and Economic Planning, Abubakar Bagudu, to review the issue of SSANU and NASU payments, with a waiver to pay the outstanding amounts.
On Thursday, the two unions staged demonstrations in Abuja, demanding the immediate release of their salaries.
However, the Federal Capital Territory Police Command reportedly stopped their peaceful protest.
The minister said the President reassured Nigerians of his commitment to the country’s economic recovery and the welfare of the citizens.
President of the NLC, Ajaero, said organised labour agreed to the new national minimum wage of N70,000 because of the President’s willingness to review the wage every three years, rather than the usual five-year cycle.
Labour explains stand
While acknowledging the economic situation, Ajaero expressed mixed feelings about the agreement but noted that the NLC would take the proposal back to its members for further discussion and buy-in.
He said, “Well, we were here last week and we’re here now, what they have announced in terms of the amount of N70,000 happened to be where we are now for now, but the good thing about it is that we will not wait for another five years to come and review.
“Rather than settling on a figure that we would wait for five years, it’s like we’ll have to now negotiate even two times within five years, to go up. That is one of the reasons why we decided to reach where we are today because of the proviso that we can review in the next three years.
“We came with other issues in the basket, like the issue of SSANU, NASU and others, especially with the affront by the Commissioner of Police of FCT. We brought it to Mr President and talked about the need for that matter to be addressed magnanimously. He asked the agencies concerned to work out the modalities for the payment of those workers in the universities.’’
“So far, that’s where we are. Although he promised some incentives like the CNG, which will lessen the burden that the Nigerian workers are passing through, you can see that we are taking this with mixed feelings because of the situation of the economy, we will have to move ahead despite the situation and the negotiation can linger. Coming from 62 to 70 and then with the promise that we’ll come back soon to negotiate it. We’re taking it back to our constituency to see how we can get a buy-in. So that’s what has transpired this afternoon,” he explained.
The TUC President, Osifo, expressed satisfaction with Tinubu’s intervention, especially with the proviso for a review of the agreement every three years.
He also commended the President’s promise to address the issues of SSANU and NASU and emphasised the need for swift passage of the minimum wage bill by the National Assembly.
He advised that the student loan scheme be targeted at those who need it most, not just the children of the rich.
Reacting to the new minimum wage announcement, the Organised Private Sector of Nigeria commended the President for ending the protracted national minimum wage negotiations.
The OPSN comprises the Nigeria Employers’ Consultative Association; Manufacturers’ Association of Nigeria; National Association of Chambers of Commerce, Industry, Mines and Agriculture; Nigeria Association of Small and Medium Enterprises and the Nigerian Association of Small Scale Industrialists.
“While we commend the President for putting to rest the immediate issue of the National Minimum Wage, we also note, most importantly, his commitment to support the sub-nationals and the organised private sector to pay the new wage,’’ the Director-General of NECA, Mr Adewale-Smatt Oyerinde, stated.
While noting that consultation was ongoing within the OPS, the NECA Director-General explained that the minimum wage agreement was premised on the understanding that the government would take definite steps to reduce the current economic burden on the private sector, including the reversal of the electricity tariff hike, among other supports.
He said, “During the consultations at the National Minimum Wage Committee, the Organized Private Sector strongly expressed concern about its ability to pay the N62,000 recommended by the Tripartite Committee.
OPS demands incentives
“In fact, the N62,000 was premised on the understanding and agreement by the government representatives that the government will take definite steps to reduce the current economic burden on the organized private sector.
“The supports requested included the reversal of the increase in electricity tariff, CBN redemptions of all outstanding forwards for companies in the productive sector, a freeze on the introduction of new taxes and levies on businesses for the next five years, duty exemption on imported conversion kits and government subsidy on procurement of same.
“Others are a fixed rate of N800 for the assessment of import duty on all production inputs, revisit of the recent Financial Reporting Council regulation to curtail its application to private businesses, enforcement of the Executive Order 003 and 005 on Patronage of Made in Nigeria Product by Ministries, Departments and Agencies of Government and the National Assembly and the discontinuation of the Price Verification Portal, as it is inimical to the smooth operation of businesses and the basis for setting it up no longer exists, among others.”
However, Oyerinde stressed that the ability of the OPS to pay remains a fundamental consideration, urging the President to implement the incentives the government promised the private sector.
“The proposed support by the President to organised businesses should be immediately announced to enable businesses to plan effectively. The private sector will continue to partner with organised labour to ensure compliance and inclusive economic development, while we look forward to the support promised by the government,” he added.
But the Peoples Democratic Party appears unimpressed with the new minimum wage, insisting it was inadequate to meet workers’ needs.
The PDP Deputy National Publicity Secretary, Ibrahim Abdullahi, said N70,000 could not be described as a living wage.
In an interview with The PUNCH, Abdullahi stated “N70,000 as minimum wage for an average worker in Nigeria is not a living wage, we’re not in support of it. And that is not going to be enough to sustain the economic reality that each and every one of us in this country is facing.
“The least the Federal Government could have done was to go up to N120,000 in the face of the ostentatious lifestyle they have maintained as a government.
“If they could afford to live in the luxuries that we have seen them live in, then we are also wondering why they will not be in the position to raise it to a level where some of these things would be in the interest of the country.
“So, we’re not comfortable with the figure, we’re in support of additional review; The government has not done well enough to resolve all these things.”
But the leadership of the Labour Party and New Nigeria People’s Party, on the other hand, applauded organised labour for reaching an agreement with the Federal Government.
The National Publicity Secretary of the LP, Obiora Ifoh, told our correspondent that the nation could settle for an improved wage with the hope that the Tinubu administration would turn around the inflation ravaging the country.
He said, “The money (minimum wage) is not enough and can never be enough, but everything has a season. A time to fight, time to jaw-jaw and time to take a look at the way forward. We must not end up in a confrontation that will not have an ending. But we do not want a situation where an impasse will further divide the nation.
“I am happy there is still room for further engagement and negotiations after three years. With that, I think that they will continue to discuss.
“I can tell you that though the money is small, we don’t like a situation where people will be pushed into more economic challenges and difficulties. It is not even how much that will be paid but how the government is managing the economy so that food will be available for every Nigerian.”
According to him, the current administration has one or two things to learn from the LP manifesto.
Ifoh said the party and its presidential candidate had been screaming in the run-up to the election on the need to move the country from consumption to a production economy.
“Today, we have over 40 per cent inflation. I wonder what that minimum wage can do. The Federal Government has one or two things to learn from the Labour Party manifesto, especially in moving from consumption to production.
“This government has spent more than one year and has not cultivated an inch of land. If they continue like this, there will be more difficult situations in Nigeria.’’
The National Publicity Secretary of the NNPP, Ladipo Johnson, congratulated the labour unions for “forcing the FG to concede to an improved pay package.’’
“Let us first congratulate Labour on their doggedness. We hope that it will be a continuous process because of the plight of the people. We hope that they will get to a stage where the minimum wage will almost cover the inflationary trend.
“In this, we believe that the government must do their best to bring down inflation. We don’t see the government doing enough to cut costs. That has always been my take. So, that problem might persist. It (wage) is a figure; If they have reached a consensus, we congratulate them on that.
“But unless inflation drops to an acceptable level, the figure will not be enough for the people to live on. It will not produce a living wage,” he stated.
But the LP Presidential campaign spokesman, Yunusa Tanko, expressed reservation that unless the government moves quickly to address the economic hardship in the country, the purpose of paying a higher wage would be defeated.
He said, “It is not about salary increase. It is about the reduction of the cost of living standard. There was a time when we were collecting N15,000 as salary. But remember, at that time, you could buy a bag of rice at almost N1,500. With N15,000, you could feed your family with N5,000 to N7,000 or even less.
“As it is now, even the N70,000 new minimum wage is not enough to buy you a bag of rice. What about the medicals you need to take care of your children just in case they fall sick?
“What about transportation and the cost of paying school fees? What about the issue of education and all of that? What you are only doing is to encourage civil servants to steal more.’’
