Nigerian workers’ hopes for a new national minimum wage to help them manage the current cost of living crisis are likely to be postponed. This delay follows the federal government’s announcement that President Bola Tinubu will engage in further consultations before making a final decision.
Information Minister Mohammed Idris shared this information with State House correspondents after President Tinubu led the Federal Executive Council (FEC) meeting at the Presidential Villa in Abuja.
Idris explained that although a report from the tripartite committee, formed to address the issue, had been presented to the president, the complexity of the situation requires additional discussions. He emphasized that the Federal Executive Committee had considered the matter but ultimately decided to postpone an immediate decision.
This move is intended to ensure that all stakeholders, including state governments and private sector representatives, have the opportunity to provide input. Idris reiterated the importance of considering various perspectives, as the national minimum wage impacts all levels of government and the private sector.
He said, “That memo was stepped down to enable Mr President to consult further, especially with the state governors and the organised private sector, before he makes a presentation to the National Assembly before an executive bill is presented to the National Assembly.”
“So I want to state that on the new national minimum wage, Mr. President is going to consult further so that he can have an informed position because the new national minimum wage, like I said, is not just an issue of the federal government: it affects the state governments, the local governments, and the organised private sector, and that is why it is called national minimum wage. It’s not just an affair of the federal government.”
On June 3, 2024, labor unions initiated a two-day strike due to the tripartite committee’s failure to agree on a new minimum wage and to protest the electricity tariff hike. However, once a new minimum wage is settled upon, its implementation will be backdated to May 2024.
Meanwhile, organized labor indicated that the new national minimum wage is expected to be finalized by early August 2024.
The president of the Trade Union Congress of Nigeria (TUC), Comrade Festus Osifo, highlighted the urgency of updating the minimum wage to address the economic challenges faced by Nigerian workers. This call to action came during a meeting in Abuja where the TUC received officials from the Kogi State government, led by Usman Ododo, the special adviser on labour matters to the state governor, and Comrade Onuh Edoka.
Osifo emphasized the pressing need for a new minimum wage, especially given the rising economic difficulties that Nigerian workers are currently enduring. He announced that the TUC, in collaboration with the Nigeria Labour Congress (NLC), is actively working to ensure that the new minimum wage bill progresses swiftly through the National Assembly. The goal is to have it receive presidential assent by the end of July or early August.
He urged state governments to prepare for the new wage implementation, using Nasarawa State as a positive example. Nasarawa has proactively set aside funds to meet future obligations, demonstrating a commitment to the well-being of its workers. Osifo expressed the TUC’s readiness to monitor the implementation of the new wage act on a state-by-state basis once it is passed.
In his appeal to state governments, Osifo stressed the importance of prioritizing the new minimum wage, even amid revenue challenges. He stated, “What we are working on, from both labour centres, is that before the end of July, we should have a new minimum wage that must have passed through the processes and been assented to by the president so that the plight of the workers will improve much more. We know that, by the grace of God, the new minimum wage act should be in place by the end of July, at most early August. This will significantly improve the plight of workers, enabling them to afford basic necessities despite skyrocketing inflation.”
Osifo also highlighted the broader economic benefits of prompt salary payments, noting that they not only support workers but also stimulate local economies. He explained that when workers are paid on time, they spend their earnings on goods and services, which drives economic growth. Therefore, he encouraged the continuous prompt payment of salaries and the timely implementation of the new minimum wage.
On his part, Comrade Onuh Edoka outlined several labour-friendly initiatives under Governor Ododo’s administration in Kogi State. He assured that both he and Governor Ododo are committed to protecting and promoting the rights and interests of workers. Edoka’s assurances highlighted the administration’s dedication to maintaining a worker-friendly environment and ensuring that the new minimum wage is implemented effectively.
The TUC president’s meeting with Kogi State officials underscored the critical need for an updated minimum wage to alleviate the economic hardships faced by Nigerian workers. With active collaboration between the TUC, NLC, and state governments, there is a concerted effort to ensure that the new minimum wage is implemented swiftly and efficiently, providing much-needed relief and support to workers across the country. The proactive steps taken by states like Nasarawa serve as a model for others, illustrating the importance of readiness and commitment to the welfare of workers.
