President Bola Tinubu has directed the Minister of Finance, Wale Edun, to present a template for a new minimum wage. This directive was confirmed by the Minister of Information and National Orientation, Mohammed Idris after a Federal Government delegation met with the President in Abuja on Tuesday.
Idris stated, “The President has directed the Minister of Finance to do the numbers and get back to him between today and tomorrow so that we can have some figures ready for negotiations with Labour. Mr President is determined to go with what the committee has set. He is also looking at the welfare of Nigerians.”
However, it remains perplexing why the government has not yet developed a minimum wage template, especially given the prolonged standoff with organized labour groups.
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The Federal Government delegation, including key officials like Idris, Edun, Secretary to the Government of the Federation George Akume, Labour Minister Nkiruka Onyejeocha, Minister of Budget and Economic Planning Atiku Bagudu, Chief of Staff to the President Femi Gbajabiamila, and the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited Mele Kyari, has been involved in the discussions.
Earlier on Tuesday, the Organised Labour suspended its nationwide strike, which had commenced at midnight on Monday. Akume emphasized the President’s commitment to a national minimum wage above N60,000, saying, “The tripartite committee is to meet every day for the next one week with a view to arriving at an agreeable national minimum wage.”
The strike had significantly impacted various sectors, including businesses, airports, universities, hospitals, and power supply. Labor leaders from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had insisted that the current minimum wage of N30,000 is insufficient for the average Nigerian worker. They also pointed out that not all governors adhere to the current salary, which expired in April 2024, five years after the Minimum Wage Act of 2019 was enacted by former President Muhammadu Buhari. This Act mandates a review every five years to align with contemporary economic conditions.
Labour had set a deadline of May 31 for the government to establish a new minimum wage. However, with no agreement reached by that date, Labour commenced a nationwide strike on June 3, 2024, in protest of the government committee’s failure to agree on a new wage and the reversal of the electricity tariff hike.
The ongoing dispute stems from the government’s removal of fuel subsidies and the liberalization of Nigeria’s forex market, which have intensified economic pressures on workers. Labor groups have rejected multiple government proposals, including the recent offer of N60,000, insisting on a new minimum wage of N494,000. This deadlock raises questions about the government’s preparedness and strategy in handling the wage review process.
Against the president’s last-hour directive to the Finance Minister, financial experts argue that the government’s failure to draft a comprehensive minimum wage template is a significant oversight, considering the protracted negotiations and Labour’s firm stance.
The government has been called upon to use this opportunity to develop a concrete plan to address the wage demands and ensure the welfare of Nigerian workers. This, many believe, will prevent the labor unions from embarking on another strike.
The labor unions said they’re relaxing the strike for only seven days, giving a window for the government to come up with an acceptable proposal. To relax the strike, the government had promised to increase the minimum wage to more than N60,000.