The Organised Labour on Tuesday criticized the Federal Executive Council’s (FEC) decision to delay the memorandum on the report of the Tripartite Committee on a new National Minimum Wage. Benson Upah, Head of Public Relations for the Nigeria Labour Congress (NLC), expressed discontent over the failure of FEC to address the memo during its meeting, stating that the delay “creates room for injurious speculations.”
Minister of Information and National Orientation, Mohammed Idris, explained to journalists that the FEC postponed the memo to allow for further consultations among President Bola Tinubu, state governors, local government authorities, and the private sector. Idris emphasized that the national minimum wage is not solely a federal matter but involves multiple stakeholders.
The Federal Government, Organised Private Sector, and Labour have engaged in several meetings regarding the new minimum wage. While Labour and Trade Union Congress leaders demand N250,000, the government and private sector have proposed N62,000, with state governors capping their offer at N60,000.
NLC Assistant General Secretary, Chris Onyeka, and President, Joe Ajaero, both rejected the N62,000 and even a N100,000 proposal from some economists. They urged President Tinubu to consider Labour’s proposal seriously.
At the opening of the 2024 Synod of the Charismatic Bishops Conference of Nigeria in Abuja, Idris highlighted the need for a realistic wage system to prevent mass retrenchment and address workers’ needs. He warned that the N250,000 proposal could harm the economy and lead to widespread job losses.
Despite the postponement, President Tinubu has promised to present a bill on the new minimum wage to the National Assembly soon. During his Democracy Day address, he reassured that his administration would pay what it could afford as the new minimum wage, a statement that sparked further criticism from Labour.
Senate spokesman Yemi Adaramodu indicated that the minimum wage bill might be sent after the Sallah break, with the Senate resuming on July 2. NLC acting President Prince Adewale Adeyanju reiterated Labour’s rejection of the N62,000 proposal and urged the President to pay a living wage.
NLC President Ajaero expects Tinubu to engage with the tripartite committee to harmonize the figure, following the committee’s stalemate.
After the FEC meeting, Idris stated that the President would consult other wage-paying entities before submitting a final proposal to the National Assembly. He emphasized the necessity of broader consultation to ensure an informed decision.
In reaction, NLC spokesman Upah condemned the FEC’s decision, stating that the delay did not bode well for workers and led to harmful speculation. TUC Deputy National President Tommy Etim called for addressing key issues such as the acceptable amount, review frequency, and criteria before the memo’s consideration by the FEC.
The Organised Private Sector (OPS) warned that a new minimum wage above N62,000 could cause industrial crises and job losses. NECA Director-General Adewale Oyerinde highlighted that private sector acceptance of N62,000 was contingent on conditions such as suspending new electricity tariffs.
At the Third Nigeria Employers Summit, President Tinubu, represented by Minister of State for Labour and Employment Nkeiruka Onyejeocha, reiterated the government’s commitment to reforms addressing systemic economic issues. Despite challenges, he assured that the administration would continue efforts to bolster business sustainability, attract foreign investment, and drive economic growth.
NECA DG Oyerinde urged the government to deepen collaboration with the private sector and fast-track palliative measures to mitigate inflationary pressures, emphasizing the importance of effective reform implementation for sustainable and inclusive economic growth.
