As the discussions of workers minimum wages continue, the Pastor of Freedom Apostle Revival International Ministry, Prophet Abiodun Adebayo has thrown his weight behind the proposed increase in workers’ salary.
Adebayo disclosed this during a special outing in Lagos.
He noted that there is every need for the government to review salaries of workers upwardly in order to cushion the effect of high standard cost of living and escalating rise in prices of commodities in the market.
He noted that the economic challenge being faced in the country ”is man-made. God did not manufacture any. God is in a business of shielding every human irrespective of religion, nation, continent, colour.
“He protects his children. make provision at beck and call.”
Meanwhile, Prophet (Mathew) Obayemi (POWEM) World Evangelical Ministry began a seven days annual programme Christened 777 Seal.
This year activities started 1st July, 2024 with the theme ‘Power in the Name and Blood of Jesus.’ The programme is expected to end on Sunday, July 7th 2024.
SIR: President Bola Ahmed Tinubu, during his speech on Democracy Day, June 12, mentioned that the bill on the new national minimum wage would soon be forwarded to the National Assembly. One would have thought that by now it would have been resolved. However, to the dismay and frustration of many, the matter still lingers. The matter was stepped down at the Federal Executive Council to allow the government further consult with stakeholders. Critics have begun to question the federal government’s commitment.
State governors have requested to be allowed to negotiate minimum wages with labour unions in their states using the cost of living in each state and the financial capacity of each state as parameters. This approach is used in some countries as financial strengths vary across states. This request was not well-received by the organised labour; they argued that the governors don’t have the power to negotiate the minimum wage. It is public knowledge that some state governments did not pay the N30,000 minimum wage for years; citing an inability to pay. The Internally Generated Revenue (IGR) of many states is low; a situation worsened by the increasing insecurity.
Nonetheless, while the federal government continues to tackle the country’s security challenges, state governments should work on improving their IGR, eliminating, waste, and prioritizing workers’ welfare.
One would wonder when Nigerian workers will begin to receive the new national minimum wage, given that an amount has yet to be agreed upon. Any amount agreed still requires approval by the Federal Executive Council, passage by the National Assembly, and finally, assent by the president. Only then can the new minimum wage be implemented. Where adequate provision was not made in the budget, a supplementary budget will be required. The timeline for this process remains uncertain.
An increase in the minimum wage would be beneficial to the nation as it would boost workers morale, reduce brain drain and stimulate economic activities. Many businesses are struggling as household consumption has dropped drastically due to low purchasing power of workers. Skilled professionals have left Nigeria in drones in search for greener pastures. Better wages would also reduce financial pressure, which sometimes pushes people into criminal activities, and motivate workers to be more productive, which include our security agents. Therefore it will aid in reducing insecurity and increasing the Gross Domestic Product in the long run.
The organized private sector should also recognize that a wage hike would positively impact them by increasing innovation and productivity, reducing staff turnover, and decreasing the temptation for staff to commit fraud. Multinational companies understand the benefits of paying employees well. To get the best from employees, they need to feel cared for, and there needs to be an alignment between the strategic goals of the organization and the personal goals/needs of the employees for organizational success.
The welfare of the citizens is one of the core responsibilities of the government. The federal government, which is at the driver’s seat in the minimum wage negotiation, should expedite the negotiation process as workers are frustrated and struggling to survive; unable to cater their basic needs like food, rent, hospital bills, and school fees.
While striving for a living wage, organised labour should also be reasonable in its demands and acknowledge the financial capacity of the organized private sector and federal, state, and local governments. The Nigerian economy is not at its best, and thus government and business finances are constrained. The goal should be to achieve the best affordable and sustainable wage.
A hike in the minimum wage will benefit workers, the government, the organized private sector, and the nation at large. The welfare of the citizens is a critical role of the government. The federal government should therefore match its words with action. The time is now.
• We are in talks to ensure submission of Bill soon, says TUC president
A new minimum wage bill will soon be sent to the National Assembly, Trade Union Congress President Festus Osifo said yesterday.
He allayed concerns of delay, explaining that while President Bola Ahmed Tinubu was consulting, Labour was also reaching and holding “conversations” with stakeholders.
He said Labour expects that “what will be submitted to the National Assembly will actually be a minimum wage that will cater for the poorest of the poor”.
Osifo added: “We are doing some level of internal work so that this bill will be submitted in earnest soon.
“We still insist on the N250,000 benchmark as the ideal minimum wage.”
He said Labour met again with the Minister of State for Labour and Employment, Secretary to the Government of the Federation and other government officials towards an acceptable minimum wage.
The Labour leader spoke at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Women Commission’s maiden Annual Convention in Abuja.
Its theme was: “The dynamic woman: navigating challenges in a constantly evolving world.”
Progress on a new national minimum wage appeared to have stalled after President Tinubu said he needed to consult with stakeholders before sending the bill for enactment.
In his June 12 broadcast, the President said an executive bill would be sent to the National Assembly to formalise the new minimum wage agreement.
It followed the conclusion of negotiations by the Tripartite Committee and the submission of the report on June 10.
While the government and the Organised Private Sector agreed on N62,000, labour demanded N250,000.
Osifo said some level of “internal work” was ongoing before the bill would be submitted in “earnest.”
“The minimum wage negotiations cannot be dead.
“The 2019 minimum wage (that has expired) took about two years to see the light of day. We started the negotiations in 2017.
“We promised you when we started in January that we would ensure this one is fast-tracked to avoid the conundrum that we were in 2019, which took two years.”
On petrol scarcity, Osifo stressed the need to address logistics problems that hamper transportation.
“The roads are very bad. How many countries are using tankers to supply premium motor spirit (PMS) or Diesel (AGO)? They use pipelines, and in some places, you will see trains with 2,000 tanks.
“We need to adopt technology and fix our pipelines and oil depots because if the depots in the nooks and crannies of Nigeria are all working, we could have had reserve stocks.
“We must be able to improve the facilities for the oil and gas logistics because if we don’t do that, perennially we would have these challenges,” he said.
National Chairperson of the PENGASSAN Women Commission, Ada Mbanaso, said it was established for advocacy and empowerment purposes.
“Initiatives such as ‘Back-to-School’ projects, donations to orphanages and old people’s homes, empowerment of widows and small-scale business owners, celebration of boy/girl child on Children’s Day, skills acquisition programs for women in rural areas, and menstrual hygiene/mental health campaign exemplify the commission’s commitment to social responsibility and community development.
“We are passionate about expanding our advocacy efforts, promoting gender equity, empowering more women to take up leadership roles, fostering a supportive environment for professional development, and addressing emerging challenges faced by women in our industry,” Mbanaso said.
President of the Trade Union Congress (TUC) Festus Osifo said labour and the Federal Government were in talks before the bill on a new national minimum wage was forwarded to the National Assembly by President Bola Tinubu.
Osifo confirmed that labour has had meetings with the Minister of State for Labour and Employment, Secretary to the Government of the Federation and other government officials to ensure that the new minimum wage would “cater to the needs of the poorest of the poor.”
He spoke at the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Women Commission maiden Annual Convention in Abuja on Tuesday with the theme: “The Dynamic Woman: Navigating Challenges in a Constantly Evolving World.”
Talks on a new national minimum wage has stalled following the decision of President Tinubu to consult with stakeholders before send the bill to the NASS.
While the Federal Government and Organised Private Sector (OPS) agreed on N62, 000 as the new minimum wage, labour insisted on N250, 000.
Osifo said some level of “internal work” was ongoing before the bill would be submitted in “earnest.”
He stated: “The minimum wage negotiations cannot be dead. The 2019 minimum wage (that has expired) took about two years to see the light of day. We started the negotiations in 2017.
“We promised you when we started in January (this year) that we will ensure this one is fast – tracked for us not to be in the conundrum that we were in 2019 which took two years.
“So where we are today, we submitted the divergent position in June, when we did that you know clearly that Mr President came out to say that he wanted to consult across board which is the governors, local government chairmen, organised private sector and labour, so we are doing some level of reachout and conversations.
“So that what will be submitted to the National Assembly will actually be a minimum wage that will cater for the poorest of the poor, so for the fact that in the media we are not shouting, we are doing some level of internal work so that this bill will be submitted in earnest soon.
“We still insist on the N250,000 benchmark as idea minimum wage.”
Osifo also said the country would continue to experience fuel scarcity until some logistics problems are addressed.
He said: “About a week ago, if you are driving between Aviele and Auchi you will realise that some people sleep on that road for days, the road is completely cut off, so if you are bringing fuel from Port Harcourt and coming to Abuja, you need to pass through that road depending on where you are bringing the products from.
“The roads as of today are very bad, if you check different part of the world, how many countries are using tankers to supply premium motor spirit (PMS) or AGO, it is not done. Naturally, what is done is the use of pipelines and in some cases they use rails and if you go to some western world, you see rails that are having over 2,000 tanks, railway lines whether it is rainy or dry season, it is okay.
“So until we imbibe technology and fix our pipelines and oil depots because that is also key, if the depots that we have in the nooks and crannies of Nigeria are all working we could have had reserve stocks in these depots, so that when our roads are bad, we can use those depots that are closer to the cities for supplies, then when the roads are good, you can restock them and go back to business as usual.
“We must be able to deepen the facilities of the oil and gas logistics because if we don’t do that, perennially we would have these challenges. Last year we had the whole of Lokoja cut off, so for tanks coming from Lagos, Calabar, Abeokuta, Port Harcourt where are they going to pass, it will be difficult so we must be able to sit down and define our distribution value chain in the oil and gas sector.”
National Chairperson of PENGASSAN Women Commission, Comrade Ada Mbanaso said the commission had positively impacting the lives of many women and children in various communities.
“Initiatives such as ‘Back-to-School’ projects, donations to orphanages and old people’s homes, empowerment of widows and small-scale business owners, celebration of boy/girl child on children’s day, skills acquisition programs for women in rural areas, and menstrual hygiene/mental health campaign, exemplify the commission’s commitment to social responsibility and community development,” she said.
Mbanaso said the PENGASSAN women commission was committed to championing the advancement of women within PENGASSAN and beyond.
“We are passionate about expanding our advocacy efforts, promoting gender equity, empowering more women to take up leadership roles, fostering a supportive environment for professional development, and addressing emerging challenges faced by women in our industry,” Mbanaso said.
The debate over the minimum wage in Nigeria has resurfaced with renewed intensity, as the Nigeria Labour Congress (NLC) and the federal government lock horns over what constitutes a fair living wage. While the arguments on both sides focus on specific numerical values, it is crucial to understand that minimum wage is not merely a number. It is fundamentally about ensuring that citizens can afford the basics of a decent living. In a nation where 133 million people live in multidimensional poverty, the discourse should transcend numbers and address the underlying issues affecting the economy and citizens’ well-being. The current debate is rooted in recent economic policies that have exacerbated the cost of living. President Bola Tinubu’s inaugural declaration that “subsidy is gone,” coupled with the directive for forex rate harmonization without a clear strategy for improving forex supply, has triggered significant economic shocks. These policies, intended to stabilize the economy, have instead intensified inflation and reduced purchasing power, making the current minimum wage proposals insufficient to meet the basic needs of the average Nigerian. The National Minimum Wage Act mandates a minimum wage across all sectors in Nigeria, including the private sector. This law aims to protect workers from exploitation and ensure a baseline standard of living. However, the enforcement and uniform application of this law pose challenges, particularly for government projects at various levels. As the biggest spender in the economy, the government’s adherence to minimum wage laws significantly impacts its budget and the viability of numerous projects. One of the critical issues with the minimum wage debate is its failure to account for the relentless rise in the cost of living. Inflation, driven by factors such as the removal of fuel subsidies and forex rate adjustments, erodes the real value of any set wage. The figures currently under discussion do not adequately reflect the inflationary pressures faced by citizens. This disconnect underscores the need for a more dynamic approach to wage setting that considers economic realities and ensures wages remain sufficient over time.
The NLC initially championed the cause of a higher minimum wage with commendable vigour. However, their rigid stance has allowed the political class to regain control of the narrative, using the issue to bolster their popularity ahead of upcoming elections. This politicization of the minimum wage debate distracts from the core issue: the need for a productive economy capable of catering to the needs of all its citizens. The extravagant lifestyles of Nigeria’s political and ruling class starkly contrast with the struggles of the average citizen. While the political elite continue to benefit from a dysfunctional system, the masses are left to fend for themselves. This disparity highlights the systemic issues within the economy, where resources are misallocated, and the needs of the populace are often secondary to the interests of the powerful few. A singular focus on increasing the minimum wage overlooks the broader economic reforms needed to ensure sustainable development and equitable wealth distribution. While a higher minimum wage can provide temporary relief, it does not address the structural issues causing economic instability. Economic diversification is essential to create a resilient economy. Nigeria must diversify its economic base beyond oil. Investing in sectors like agriculture, manufacturing, and technology can generate employment and reduce dependency on volatile global oil prices. Establishing robust social safety nets, such as unemployment benefits and universal healthcare, can protect vulnerable populations from economic shocks and reduce the burden on wage adjustments to provide a decent standard of living. Tackling corruption is critical to ensuring that public funds are used effectively for development projects that benefit the masses. Transparent governance can restore public trust and create a more equitable distribution of resources. Investing in education and skills training can enhance productivity and empower citizens to participate actively in the economy. A skilled workforce is essential for driving innovation and attracting investments. Improving infrastructure, such as roads, electricity, and internet connectivity, can boost economic activities and reduce the cost of doing business, making it easier for businesses to thrive and pay fair wages. The crux of the minimum wage debate is often missed in public discourse: increasing the minimum wage alone does not solve the underlying economic problems. It is a temporary fix that does not address the root causes of poverty and inequality. Without comprehensive economic reforms, any wage increase will be quickly eroded by inflation and rising living costs. The minimum wage debate between the NLC and the federal government is a critical issue that demands careful consideration and holistic solutions. It is not just about setting a numerical value but about creating an economy that ensures all citizens can afford the basics of a decent living. The political class must move beyond populist measures and address the systemic issues that hinder economic growth and equitable wealth distribution. By focusing on long-term economic reforms and inclusive policies, Nigeria can create a sustainable path to prosperity for all its citizens. •Basah is the National Coordinator, Civil Society Alliance for Transparency and Development (CSATD).
Every country has a benchmark for paying its workers. What is a minimum wage in Country A may not be so in Country B; the same scenario plays out in the case of states.
The fixing of the minimum wage depends on the resources available and the ability to sustain the payment over the years. This is the crux of the debacle that has greeted the minimum wage debate in Nigeria.
Considering how far the pendulum has swung so far, dialogue remains the only way to find a solution to the debate. The lingering stalemate was just a phase of the entire process. The goal should be a win-win, based on renegotiation with more clarity of thoughts and openness in an atmosphere of mutual trust.
As the Federal Government, Labour, and the Organised Private Sector (OPS) resume residual negotiation on the minimum wage discussion, failure can be averted, if the two sides mutually embrace reality.
The main issue is not what the Nigeria Labour Congress (NLC) wants the government to offer but what it can afford without creating strains on the efforts at meeting other items on the national expenditure list. The ability to pay would determine the sustainability of the proposed wage.
There are two dissenting voices from opposite directions – Labour and governors. Unless the positions are harmonised, government and Labour cannot move forward on the issue.
As a democratic, President Bola Tinubu has opted to widen consultations on the wage proposal before sending an Executive Bill to the National Assembly. His position followed the submission of the report by the Tripartite Committee on Mimimum Wage.
Although the committee has recommended N62,000, as agreed by the Federal Government and private employers of labour, the NLC has kicked against it, insisting on N250,000.
Instructively, there is a division in the government. The Federal and the 36 states’ governments are not on the same page over the proposal. While the Federal Government is pushing for N62,000, a hundred per cent increase, judging by the subsisting N30,000 minimum wage, governors have doubted the ability of states to pay the money. Also, local government chairmen, under the aegis of the Association of Local Government of Nigeria (ALGON), have said they cannot meet the demand, unless there is a revenue adjustment to channel more resources to the councils.
The argument of governors is that states are not equally endowed. Some are rich and many are poor. Even increased allocations to states in recent times have not led to improved service delivery. Despite the increased allocation, many states cannot pay the N30,000 wage agreed with Labour in 2019 under the Muhammadu Buhari administration.
Besides, some governors have argued that in a federal system, wage or salary determination should not be based on a uniform formula, despite the mistake of nationally adopting a uniformity of emolument for elective office holders.
After their meeting in Abeokuta, the Ogun State capital, Southern governors suggested that each state should be allowed to negotiate the new wage with labour unions.
They noted that the ability to pay and the cost of living in each state should be considered before a decision is taken on an agreeable sum to be adopted as the benchmark.
Labour’s demand for a pay rise is legitimate in the light of current economic realities. The economy is on crutches. Indeed, the decision by the Federal Government to remove fuel subsidy and refloat the exchange rate has unleashed a cost of living crisis, underscored by increases in the prices of goods and services.
The cost of living is soaring while the quality of living is declining. Prices of goods and services, including foodstuffs, house rents, air tickets, school fees, transport fares and hospital bills, are moving up in geometric proportions. The value of the currency has decreased. Households are in turmoil over their inability to adjust to the economic trends. Dependents suffer.
Labour is bitter that income and resource distribution are skewed and the lopsidedness is to the advantage of the few in the corridors of power. They are uncomfortable with the real or imagined vulgarian lifestyles and opulence of some public office holders in a country where the poor cannot afford three square meals per day.
The gap between the rich and the poor widens daily. The current salary structure cannot meet the modest needs of families. From the point of view of NLC, a salary increment is inevitable. But it is not the end of the matter. If the salary is increased without a surgical operation on the economy, workers will only feel a momentary impact. In a country where there is no regular electricity and domestic fuel consumption is conditional on importation, the huge cost of people’s welfare, including civil servants, is burdensome. Even the ease of doing business is suspect in the light of an atmosphere where businesses are constrained by various factors.
To the NLC, workers are being shortchanged in wealth distribution. Yet, Nigeria cannot function maximally without the input of its workers to productivity, as demonstrated by its recent two-day nationwide strike when electricity supply was cut, hospitals were shut, schools were closed and gates leading to airports were barricaded, thereby grounding air travels.
However, private workers, artisans, peasants, self-employed citizens and other Nigerians have urged Labour to pull the brake. Relative to the general population, workers only account for a tiny fraction. Their argument is that if the budget is exclusively committed to salary payment for federal, state and local government workers, what would be left to service other items of expenditure – schools, hospitals, infrastructure, and environment – would be too small.
The Federal Government has defended its offer of N60,000.00 per month, based on economic considerations and other non-monetary incentives it has offered to workers and other Nigerians. The arguments look a bit convincing.
Government’s incentives include N35,000 wage award for all treasury-paid federal workers; N100 bill for the procurement of CNG-fuelled busses and CNG conversion kits; N125 billion for conditional grant and financial inclusion to MSMEs, N25,000 each to be shared to 15 million households for three months; N185 billion palliatives (loans to states) to cushion the effects of fuel subsidy removal; N200 billion to support the cultivation of hectares of land to boost food production; and N75 billion to strengthen the manufacturing sector.
Others are: N1 trillion for student loan for higher education; 42,000 metric tonnes of grains from strategic reserve; distribution of 60,000 metric tonnes of rice from the millers’ association; salary increase of 25-35 per cent on all consolidated salary structures for federal workers; 90 per cent subsidy on health costs for federal civil servants registered on the NHIS; and light rail in Abuja to relieve transportation cost till the end of the year.
At its next meeting, Labour, which had rejected what the Federal Government and OPS had agreed upon, may demand more concessions or impress it on government to shift grounds. But a hardline approach would be counterproductive.
Some economic experts have also warned about the consequences of adopting an unrealistic and unsustainable wage increase. The first is that that government would have to borrow to pay. This would be illogical.
The second is that employers in the private sector may be pushed to the wall and might resort to laying off their workers to stay afloat.
President Tinubu’s decision to further consult or dialogue with the NLC provides an opportunity for his administration and Labour to thoroughly reevaluate the report of the Tripartite Committee. The NLC, which walked out of the previous meeting, will return to the negotiating table.
If the Federal Government, the 36 governors, the OPS, and NLC could take a holistic look at the Labour’s request, a reasonable and logical agreement may be arrived at in national interest.
Fresh fears over standoff, impact of new minimum wage
The Nigeria Labour Congress (NLC) yesterday rebuked governors for asking to be allowed to pay whatever they can afford as minimum wage to workers.
Negotiations for minimum wage between organised labour and government has been deadlocked with the federal government offering N62,000 while labour insists on N250,000.
Further talks on a new wage are being put on hold on account of the decision of President Bola Tinubu to consult before sending the Bill to the National Assembly.
But many state governments are of the opinion that even the N62,000 proposed by the federal government is too high.
In its communiqué at the end of a meeting in Abeokuta on Monday, the Southern Governors Forum resolved that each state should be allowed to negotiate its minimum wage.
Reacting to the governors’ position in a statement signed by Benson Upah, its Head of Public Affairs, the Nigeria Labour Congress (NLC) said the notion that states should be allowed to negotiate their minimum wage is not only dictatorial but also undermines the very essence as well as the model adopted for creating a national minimum wage in Nigeria.
The statement said the desire by many governors to pay workers whatever they like is a recipe for deepening poverty and cause varying dimensions of insecurity.
The NLC urged President Tinubu, who had promised a living wage (which is superior to a minimum wage) not to allow himself to be blackmailed or boxed into a corner by some unpatriotic governors.
The NLC also urged the Federal Government to stop dithering on the issue of national minimum wage because of the gang up by some selfish governors.
The congress urged the governors to abandon any inclination towards dictatorial practices as the process remains a tripartite one.
The strongly-worded statement reads: “The Nigeria Labour Congress (NLC) is compelled to address the recent statements made by some Nigerian governors regarding their desire to pay what they deem fit to Nigerian workers as the minimum wage.
“This notion is not only dictatorial but also undermines the very essence as well as the model adopted for creating a national minimum wage in Nigeria.
“The concept of a national minimum wage is not arbitrary. It represents a national wage floor, a baseline below which no worker in the law should be paid.
“This threshold is a collective agreement that ensures a minimum standard of living for every worker in the law.
“The Governors’ demand to unilaterally determine the minimum wage negates this principle and threatens the welfare of Nigerian workers and the national economy.
“It is important to remind the Governors that the national minimum wage is not synonymous with the individual pay structures of the states which they implement religiously, reflecting their unique financial capabilities and circumstances.
“This diversity in pay structures underscores the flexibility that already exists within the system, allowing states to reward their workers in alignment with their financial realities.
“Furthermore, the Governors’ argument appears inconsistent when juxtaposed with the remuneration of political office holders.
“Why is there no hue and cry when political office holders across the nation receive uniform salaries as determined by Revenue Mobilisation, Allocation and Fiscal Commission?
“This double standards which pits a few privileged against the majority poor, is an issue that should be of concern to those who love this country.
“We are deeply concerned by this blatant display of ignorance regarding the global best practices for national minimum wage by some of these Governors.
“It is evident that despite their frequent travels abroad, they have deliberately chosen not to educate themselves on fundamental global issues crucial to successful governance.
“This level of self-imposed ignorance on basic industrial relations matters clearly illustrates why our nation is poorly governed, resulting in unacceptable suffering of Nigerians.
“For this set of governors, we recommend a return to school for proper education as they constitute a threat to our democracy.
“We must also use the opportunity to commend the forward-looking and progressively-minded governors (not in name but in deed) who take seriously the welfare of workers in their thoughts and policies. We will continue to identify as well as work with them.
“The pursuit by many governors to pay workers whatever they like deepens poverty and causes varying dimensions of insecurity.
“The governors are carried away by their present structure of security detail, but the sword of Damocles awaits them on exit from office.
“It is unfortunate that workers’ salaries are often seen as charity rather than the hard-earned income of hardworking Nigerians.
“It is equally painful that some of these governors fail to realise that workers’ salaries substantially drive the economy. Not surprisingly, they prioritise their greed over the need of ordinary citizens.
“The fate of Nigerian workers cannot be left solely in the hands of employers, whether public or private. No sane society does that.
“What the governors are asking for is akin to allowing numerous companies and organisations in Nigeria to pay workers whatever they like.
“While these companies may not pay the same salaries, they must adhere to the national wage floor, and the same should apply to state governors.”
The statement added: “We urge President Tinubu who had promised a living wage (which is superior to a minimum wage) not to allow himself be blackmailed or boxed into a corner by unpatriotic governors.
“We urge the federal government to stop dithering on the issue of the national minimum wage because of the gang up by some selfish governors.”
The NLC urges governors to abandon any inclination towards dictatorial practices as the process remains a tripartite one.
“Accordingly, we call for policies and actions driven by equity and fairness.
“Ensuring a fair minimum wage is not only a matter of economic justice but also a fundamental aspect of maintaining social stability and national cohesion.
“Nigerian workers should not be reduced to beggars! Enough is enough!
“Finally, NLC stands firm in its commitment to protecting the rights and welfare of Nigerian workers.
“We will continue to advocate for a fair and equitable wage system that reflects the true spirit of our nation’s values.
“We call on the Governors to join us in this commitment for the benefit of all Nigerians. Let democracy flourish.”
NECA boss faults Labour, insists governors can make suggestions
The Director General of Nigeria Employers Consultative Association, Mr. Adewale-Smatt Oyerinde, yesterday expressed concern over the stance of organised labour in the ongoing minimum wage talks with the federal and state governments.
Oyerinde, who was reacting to the view in some quarters that the talks may have broken down irretrievably as a result of the differing views expressed by labour and state governments, said the latter have the right to make suggestions as to how much they can pay, but with a caveat that they must not pay below the agreed national minimum wage.
Speaking with our correspondent last night, Oyerinde said: “The Governors’ Forum has the right to decide and express their views and whatever they express there is still a constitution that we all have to subject ourselves to.
“Labour is in the exclusive list of the constitution, which puts labour issues at the purview of the Federal Government. Until it gets to the concurrent list of the constitution, that is when each of the state governments can deal with labour.
“So the suggestion by the Governors’ Forum is legal and they are well within their rights to make such suggestions.
“But the constitutional democracy that we are currently running says labour is in the Exclusive list. So for us at NECA, there’s no ambiguity in it.”
On what obtains in other climes, the NECA boss said there is also a national minimum wage which serves as a barometer for deciding what other sectors pay.
“In the USA and some other countries, there is always a national minimum wage and the states can fix their own minimum wage. But the only thing is that nobody fixes below the national minimum wage.”
While interrogating the minimum wage template suggested by the organised labour, Oyerinde took the latter to the cleaners.
“That’s where labour got it wrong. You don’t come up with a figure that is so outrageous and that puts the state governments in jeopardy. Part of the reaction of that conversation is what we are seeing.
“The agitations for state minimum wage will continue until we get it right.”
Oyerinde revealed that the Tripartite Committee has since sent its recommendations to President Tinubu for his inputs and onward transmission to the National Assembly for a closure on the matter.
He however reiterated that although the governors can offer suggestions as to how to pay the minimum wage but would be until such a time the national minimum wage is decided.
Jigawa will negotiate its own minimum wage, says Gov Namadi
The Governor of Jigawa State, Umar Namadi, says his government will negotiate a new minimum wage for workers in the state.
The governor, who spoke during a Channels Television programme, Sunrise Daily, yesterday, said irrespective of whatever the federal government decided as the new minimum wage, his government would negotiate with workers in the state on what to pay them.
“We cannot say what we can offer because it is a matter of negotiation,” he said
“Jigawa has not agreed on any figure because we have not even started the negotiation.
“We put up a tripartite committee including the labour and stakeholders and we work together and then we agree on a figure,” Governor Namadi said, arguing that such has been the practice in the state.
FG must encourage productivity –Aremu
In the view of Prof. Jonathan Adeyemi Aremu, a renowned economist, it is rather appalling that the minimum wage talks are still lingering after several weeks of back and forth.
Waxing philosophical, Aremu said money is not what people are asking for but a better life.
“Again, should they continue increasing salaries of people? Let me say this one, that there will be no end to asking for higher money if the economy is not well managed.
“You don’t need to carry too much paper money to be able to feed. If the economy is well managed so that the price level will not rise, the Naira will not be bad, please, there will not be any need for all these things.”
Aremu, who had a successful career at the Central Bank of Nigeria (CBN) where he rose from the position of Assistant Economist in 1980 to become the Acting Assistant Director of Research and resigned in 1992, added: “I think the focus of government and that of labour should be how do you want to manage the economy so that this issue of price increases that is eroding our welfare will no longer be there? That is it.
“But a situation in which the macroeconomic policies continue to be bad, labour will soon ask for one million. So there will not be any limit to paper money that is being requested for.
“What we are saying is, can we have better productivity? Can the farmers go to farm? Can we export so that we have more foreign exchange? And then Naira has an appreciation. These are the issues.
“There will not be any limit to asking for money if there is continuous crisis in production level so that we don’t have enough product for people to buy, so that Naira is not well managed in a way in which the dollar will not continue to be against Naira.
“So what can government do so that we can have the macroeconomic policy objectives in terms of price level, in terms of inflation, in terms of employment, and in terms of growth?
“What can we do so that those four basic things can actually be stabilised? If they are stabilised, there will not be any need for all these crises.”
The government, he reiterated, “needs to pay attention to a number of issues. Farmers must be able to go to farm, by making sure all these banditry activities stop so that farmers can return to farm and prices of foodstuff can come down”.
According to him, a situation where people will be asking for more money and more paper will be printed by the Central Bank will never augur well for the economy.
“People want to eat, want to wear clothes and they want to send their children to school. That is the issue. And the answer is not that we open the gate so that more food will come in. For God’s sake, where will we get that money to exchange?
“When we are owed a lot, both externally and internally, I think that we should face productivity in the country. The way in which companies are rushing out of the economy is not good.”
Barely 48 hours after President Bola Ahmed Tinubu resolved to consult wildly on a new national minimum wage before sending a bill to the National Assembly, governors have promised to work with his administration to ensure an enhanced wage for workers.
The governors gave the assurance after their meeting in Abuja on Wednesday night.
According to a communiqué made available to reporters yesterday, the governors promised to get actively involved in the efforts to arrive at a structure mutually agreeable by all the concerned parties.
The communiqué was signed by the Chairman of the Nigerian Governors’ Forum(NGF) and Kwara State Governor AbdulRahman AbdulRazaq,
The parties involved in the negotiation are the federal, state and local governments; the two labour centres—Nigeria Labour Congress (NLC) and Trade Union Congress(TUC)— as well as the Organised Private Sector (OPS).
The governors said: “We agreed to continue engaging with key stakeholders to reach a mutually agreeable solution.
“We (the governors) remain dedicated to the process and assure that better wages will result from the on-going negotiations.”
Information and National Orientation Minister Mohammed Idris had on Tuesday announced that President Tinubu stepped down action on a memo on the new wage to enable him ‘’ to consult further, especially with the governors and the organised private sector.’’
During the negotiation, the Federal Government team and OPS offered N62,000 as a new national wage while the organised labour demanded N250,000.
In another communiqué, governors of the 17 Southern states advocated that each state be allowed to negotiate the new wage with labour unions.
They also said that the ability to pay and the cost of living in each state must be factored in while arriving at an agreeable sum to be used as a benchmark.
These were contained in the 16-page communiqué issued after their Monday meeting in Abeokuta, Ogun State.
The communiqué by the chief executives who met under the aegis of the Southern Governors’ Forum(SGF) reads in part:‘’The forum discussed the minimum wage issues demanded by labour and unanimously agreed that the minimum wage should be reflective of the cost of living and that each state should be allowed to negotiate its minimum wage. This led to the forum’s discussion on fiscal federalism and devolution of powers, ‘’
In Owerri, Imo State, the government and state chapter of the NLC said that the Hope Uzodimma administration pays servants N40,000 as minimum wage and not N30,000 claimed by the national leadership of the congress.
Commissioner for Information, Public Orientation, and Strategy Declan Emelumba wondered what the NLC National secretariat stood to gain by dishing out falsehood.
Chairman of the state NLC Uche Nwigwe said: “Since 2020, till now, Imo State workers have been on N30,000 minimum wage. The government, in order to alleviate the suffering of Imo workers, increased the state minimum wage to N40,000.’’
The 36 state governors have pledged their commitment to collaborating with the Federal Government to ensure an improved wage structure for civil servants.
This assurance was given during a meeting of the Nigeria Governors’ Forum (NGF) held on Wednesday night in Abuja.
According to a communique issued at the end of the meeting, the forum’s members discussed various pressing national issues, with a strong emphasis on addressing the minimum wage concerns.
As stated in the communique signed by NGF’s chairman and governor of Kwara state, AbdulRahman AbdulRazaq, “the governors agreed to continue engaging with key stakeholders to reach a mutually agreeable solution.
“We (the governors) remain dedicated to the process and assure that better wages will result from the ongoing negotiations.”
The communique also revealed that the governors received a presentation from the Minister of Women Affairs on the World Bank–Nigeria for Women Project Scale-Up, along with other activities of the Ministry.
The governors noted the importance of the project and emphasized the need to implement it at the state level as initially conceived, as the states are the primary obligors of the project.
“The governors acknowledge the work and contributions of the Ministry of Women Affairs in promoting gender equality, empowering women, and advancing social development across Nigeria.
“Members received a briefing from Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy & Tax Reforms Committee.
“He highlighted the progress made regarding the ongoing Fiscal Policy and Tax Reforms. He sought the input and support of their Excellencies on some proposals that would directly impact the subnational level of government.
“Members pledged their support for the committee to ensure the successful implementation of these reforms and to collaborate closely to address any challenges that may
“Members received the Acting Country Director of the World Bank, Mr. Taimur Samad, and his team to discuss the Bank’s various programmes currently being implemented in the states, including HOPE – Series of Projects: Nigeria Human Capital Opportunities for Prosperity and Equality, Food and
“Nutrition Security, NFWP-SU: Nigeria For Women Project Scale Up, NG-CARES: Nigeria Community Action (for) Resilience and Economic Stimulus Program, SABER: State Action on Business Enabling Reforms Program, SPIN: Sustainable Power and Irrigation for Nigeria Project.
“Members expressed willingness to continue to provide the much-needed support to ensure programme effectiveness across the country.”
The Federal Executive Council (FEC) has stepped down the memorandum on the report of the Tripartite Committee on New National Minimum Wage for further consultation.
Minister of Information and National Orientation, Mohammed Idris, who disclosed this to journalists on Tuesday, June 25, after the FEC meeting, which was presided over by President Bola Tinubu, said this was done to allow the president to consult wider.
According to the minister, the council took its decision realizing that the issue of the national minimum wage is not just for the consideration of the federal government, but involves other stakeholders like the state and federal governments, as well as the organized private sector.
He said the president needs to interact with other wage-paying entities to factor their contributions and circumstances into the executive bill on the matter that will be passed on to the National Assembly for passage into law.
“I want to inform Nigerians here that the Federal Executive Council deliberated on that and the decision is that because the new national minimum wage is not just that of the federal government, it is an issue that involves the federal government, the state governments, local governments, and the organized private sector and of course, including the organized Labour.
“That memo was stepped down to enable Mr. President to consult further, especially with the state governors and the organized private sector, before he makes a presentation to the National Assembly before an executive bill is presented to the National Assembly.
“So I want to state that on the new national minimum wage, Mr. President is going to consult further so that he can have an informed position because the new national minimum wage, as I said, is not just an issue of the federal government. It affects the state governments, it affects the local governments, it also affects the organized private sector, and that is why it is called national minimum wage. It’s not just an affair of the federal government.
“So, Mr. President has studied the report and he’s going to consult wider before a final submission is being made to the National Assembly”, Idris said..
It would be recalled that at the end of the Tripartite Committee meeting on the new national minimum wage, the government team and the organized private sector offered N62,000 from the current N30,000 but the organized labour comprising the Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, demanded N250,000 living wage.
The decision of the President to consult the relevant stakeholders is coming on the heels of the statement by the President of the NLC, Joe Ajaero, where he said that the organized labour had expected the President to reach out to the members of the Tripartite Committee to harmonize the figure.
Ajaero had hinged his position on the fact that there was a stalemate at the end of the Tripartite Committee meeting.
