Following an agreement between the federal government and organized labor on Thursday, President Bola Ahmed Tinubu will send an executive bill proposing a new minimum wage of ₦70,000 to the National Assembly. This development follows a meeting between the president and leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) at the Presidential Villa. The new wage agreement comes three months after the expiration of the previous national minimum wage.
In a statement from the presidency, it was disclosed that the new wage would be subject to review every three years. The decision came after extensive negotiations, with the labor unions initially demanding a ₦250,000 minimum wage, while the federal government offered ₦60,000 before both parties settled at ₦70,000.
President Tinubu also made concessions on behalf of the federal government, directing that all contentious issues with the Non-Academic Staff Union of Universities (NASU) and the Senior Staff Association of Nigerian Universities (SSANU) be resolved. He assured that measures would be expedited to reduce the impact of economic reforms on citizens, including the acquisition of more CNG buses to make Nigeria more CNG compliant.
Detailed Report on Minimum Wage Negotiations
The journey to the final agreement on the new national minimum wage began when the previous minimum wage act of ₦30,000 expired in April 2024. The fuel subsidy removal in May 2023 significantly increased the cost of commodities and transportation, prompting cries from citizens and threats of industrial action from organized labor.
In January 2024, President Tinubu inaugurated a 37-member tripartite committee to negotiate a new minimum wage. The committee included representatives from the federal and state governments, the private sector, and organized labor. Initial negotiations were fraught with disagreements, with labor unions rejecting several offers from the government, culminating in a national strike on June 3rd.
Following further negotiations and a commitment from President Tinubu to a higher wage, the parties agreed on a new minimum wage of ₦70,000. This agreement was reached after a series of deadlocks and was facilitated by the Secretary to the Government of the Federation, George Akume.
The new minimum wage bill will be sent to the National Assembly for legislation, ensuring that Nigerian workers will start receiving the new minimum wage once it is passed into law.
Read On: 3 Best Beachfront Hotels And Resorts On Lagos Island
Reactions and Future Expectations
The General Secretary of the Nigeria Labour Congress, Emmanuel Ugwu, expressed mixed feelings about the agreement, emphasizing that the struggle for better wages continues. He noted that while ₦70,000 is not a living wage, it is a reasonable minimum wage under the current economic conditions. He called for a swift implementation of the new wage law once passed by the National Assembly.
Hi, I am a writer for revampNG