By Akinsuroju Olubunmi
Minimum wage hike: FG proposes N54,000.
In a significant development, the Federal Government has proposed a new minimum wage of N54,000. This comes after the Organised Labour, which includes the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), walked out of a recent meeting with the Tripartite Committee on Minimum Wage. Initially, the government had offered N48,000, which was rejected by the unions.
A reliable source within the ongoing meeting in Abuja revealed, “The Federal Government has now proposed the sum of N54,000.” However, it remains uncertain if this new offer will be accepted by the Labour groups, who have been advocating for a minimum wage of N615,000.
Joe Ajaero, the National President of the Nigeria Labour Congress, maintains that the N615,000 figure is based on a thorough analysis of the current economic climate and the needs of an average Nigerian family of six. He criticized the government and the Organised Private Sector (OPS) for the negotiation breakdown, saying, “Despite earnest efforts to reach an equitable agreement, the less than reasonable action of the Government and the OPS has led to a breakdown in negotiations.”
On the other hand, the Director-General of the Nigeria Employers Consultative Association, Adewale-Smatt Oyerinde, condemned the unions’ decision to walk out, describing it as unfortunate. He urged union leaders to return to the negotiation table for the sake of their members and national development.
Ajaero defended the union’s actions, stating, “The government’s proposal of a paltry N48,000 as the minimum wage does not only insult the sensibilities of Nigerian workers but also falls significantly short of meeting our needs and aspirations.” He noted that the lowest-paid workers in the private sector earn N78,000, highlighting the disparity and the lack of genuine negotiation from employers and the government.
He also accused the government of undermining the credibility of the negotiation process by failing to provide data to support its offer. “This lack of transparency and good faith erodes trust between the parties involved,” Ajaero said, emphasizing the unions’ commitment to advocating for the rights and interests of Nigerian workers.
Ajaero called on the government to return to negotiations with a fair proposal that reflects the contributions of Nigerian workers and the economic realities they face.
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 before the current N30,000 wage expires on April 18.
At the committee’s inauguration, Shettima emphasized the need for a swift resolution, stating, “This timely submission is crucial to ensure the emergence of a new minimum wage.” Subsequently, zonal public hearings were held on March 7 in various states, including Lagos, Kano, Enugu, Akwa Ibom, Adamawa, and Abuja, where the NLC and TUC proposed different figures based on regional economic conditions.
In the South-West states, NLC members demanded N794,000, while the TUC suggested N447,000, citing the high cost of living and economic challenges.
Minimum Wage, Negotiation
Minimum wage hike: FG proposes N54,000