Federal Government Raises Minimum Wage Proposal to N54,000

Following a walkout by the Organised Labour—comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC)—during the last meeting with the Tripartite Committee on Minimum Wage, the Federal Government has increased its minimum wage proposal from N48,000 to N54,000. This information was disclosed by a highly reliable source within the ongoing meeting in Abuja.

Labour’s Demands and Government’s Offer

The Federal Government’s new proposal of N54,000 remains significantly lower than the N615,000 minimum wage demanded by the organized Labour. The NLC National President, Joe Ajaero, justified the N615,000 demand, stating that it was based on an analysis of the current economic situation and the needs of an average Nigerian family of six.

Breakdown in Negotiations

Ajaero criticized the government and the Organized Private Sector (OPS) for the breakdown in negotiations. He argued that the government’s initial proposal of N48,000 was insulting and insufficient to meet the needs and aspirations of Nigerian workers. He also highlighted that even the lowest-paid workers in the private sector receive N78,000, underscoring the disparity between the proposed minimum wage and prevailing standards.

OPS Response and Call for Negotiation

Speaking on behalf of the OPS, the Director-General of the Nigeria Employers Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, described the unions’ walkout as unfortunate and urged union leaders to return to the negotiation table for the sake of their members and national development.

 Government’s Data and Credibility Concerns

Ajaero further accused the government of failing to provide data to support its offer, which he said undermined the credibility of the negotiation process. He reiterated that the government’s proposed figures were inadequate and did not reflect the economic realities faced by Nigerian workers.

President Tinubu, represented by Vice President Kashim Shettima, inaugurated the 37-member Tripartite Committee on Minimum Wage on January 30, 2024. The committee, which includes representatives from federal and state governments, the private sector, and organized labour, is tasked with recommending a new national minimum wage ahead of the expiration of the current N30,000 wage on April 18.

Public Hearings and Regional Proposals

As part of its mandate, the committee held zonal public hearings simultaneously on March 7 in Lagos, Kano, Enugu, Akwa Ibom, Adamawa, and Abuja. During these hearings, the NLC and TUC proposed various figures for a living wage, reflecting the economic challenges and high cost of living. In the South-West states, NLC members demanded N794,000, while the TUC suggested N447,000.

 Urgency for Resolution

Vice President Shettima urged the committee members to reach a speedy resolution and submit their reports early, emphasizing the importance of timely submission to ensure the emergence of a new minimum wage.

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Written By: Doris Chinwe Omemgbeoji

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