- FEC Steps Down Minimum Wage Memo For Further Consultations
- Tinubu To Consult With Govs, Private Sector Before Sending Proposal To N’ Assembly
- Organised Labour Kicks, Says Failure To Discuss Memo Giving Room For Speculation
Nigeria’s walk to a new minimum wage for its workforce continues as indications have emerged that President Bola Ahmed Tinubu has disclosed that he needs more time to consult widely on the appropriate amount to be paid as a new minimum wage for Nigerian workers.
As organized labour comprising the Nigeria Labour Congress (NLC); Trade Union Congress (TUC) and other affiliated bodies continue to wait on the President to announce a new acceptable minimum wage for Nigerian workers, all hopes were on the Federal Executive Council (FEC) meeting on Tuesday for the deliberation to take place.
However, that hopes were dashed when the memo was stepped down when it came up for hearing.
The Matrix gathered that the President explained that the Federal Government thought it wise to consult with other stakeholders, especially as the new wage proposals affect the local government areas, states and the Federal Government.
According to the Minister of Information and National Orientation, Mohammed Idris while briefing State House Correspondents on Tuesday after the FEC meeting that the final decision on the new national minimum wage will not only affect the federal government but also states, LGAs, and the private sector.
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The information minister said Tinubu will make an informed decision after a wider consultation, adding that the new minimum wage requires input from all stakeholders.
He said the memo was stepped down because the Federal Government thought it wise to consult with other stakeholders, especially as the new wage proposals affect the local government areas, states and the Federal Government.
Hear him; “A lot of people have been asking me questions pertaining to whether the New Minimum Wage would come up for deliberations today at FEC, especially whether the government was going to have a position on the new wage.
“Recall that there was a report from the tripartite committee, comprising the Nigeria Labour Congress and Trade Union Congress, the Organised Private Sector and the government representatives, these three make up the tripartite committee that discussed the new minimum wage. They have forwarded a report to the President which he has gone through.
“But consistent with the way it should be done, I want to inform Nigerians that the FEC deliberated on that because the new national minimum wage is not just the decision of the Federal government.
“That memo was stepped down to enable Mr President to consult further so that he can have an informed position on what to do. This decision was taken because it affects the States, LG and the Federal Government.”
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“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 [of an executive bill] to the National Assembly.”
It would be recalled that talks for a new minimum wage for Nigerian workers have been ongoing for a while. The Minimum Wage Act of 2019, which made ₦30,000 the minimum wage, expired in April 2024. The Act should be reviewed every five years to meet with contemporary economic demands of workers.
To address this, President Bola Tinubu in January set up a Tripartite Committee to negotiate a new minimum wage for workers. The committee comprises the Organised Labour, representatives of federal and state governments as well as the Organised Private Sector.
However, the committee members failed to reach an agreement on a new realistic minimum wage for workers, forcing labour to declare an indefinite industrial action on Monday, June 3, 2024. Businesses were paralysed as labour shut down airports, hospitals, the national grid, banks, National Assembly, and state assemblies’ complexes.
The labour unions said the current minimum wage of ₦30,000 can no longer cater to the wellbeing of an average Nigerian worker, saying government should offer workers something economically realistic in tandem with current inflationary pressures, attendant effects of the twin policies of petrol subsidy removal and unification of the forex windows of the current administration.
Labour “relaxed” its strike on June 4, 2024 following assurances from the President that he was committed to a wage above ₦60,000.
Both the Trade Union Congress (TUC) and Nigeria Labour Congress (NLC) leadership subsequently resumed talks with the representatives of the Federal Government, states, and the Organised Private Sector.
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On Friday, June 7, 2024, the two sides (labour and the government) still failed to reach an agreement. While labour dropped again its demand from ₦494,000 to ₦250,000, the government added ₦2,000 to its initial ₦60,000 and offered workers ₦62,000.
Both sides submitted their reports to the President who is expected to make a decision and send an executive bill to the National Assembly to pass a new minimum wage bill to be signed into law by the President.
In his Democracy Day speech on June 12, 2024, the President assured the Organised Labour that an executive bill on the new national minimum wage for workers would soon be sent to the National Assembly for passage.
The President is expected to make a decision on the ₦62,000 proposal of the government and private sector side; and the ₦250,000 demand of the Organised Labour.
Meanwhile, organised labour is yet to speak on the latest development as at the time of filing this report.
