The new proposed national Minimum Wage has been adjusted by the Federal Government to ₦62,000, indicating an increase of ₦2,000. On the other hand, organized labour has lowered their initial request from ₦494,000 to ₦250,000. After receiving the Minister of Finance Wale Edun’s report on the financial impact of raising the minimum wage, President Bola Tinubu made this recent decision. One of the negotiators from the labour side expressed disappointment at the prolonged delay before a final offer was made.
However, the offer of ₦62,000, supported by the private sector, was significantly lower than the labour’s reduced request of ₦250,000. This turn of events was deemed embarrassing by the source. According to report, Tinubu instructed Edun to provide a detailed breakdown of the expenses related to a potential increase in the minimum wage within a 48-hour timeframe. During a meeting at the Presidential Villa in Abuja, the President issued the directive to the government Negotiation team, which is headed by the Secretary to the Government of the Federation, George Akume.
Osifo argues that a ₦250,000 minimum wage is needed due to econ challenges.
Despite Edun submitting the proposal to the president, the government has chosen to keep it confidential and it has not been disclosed to the public. There is a recall of how organized labour, represented by both the Nigeria Labour Congress and Trade Union Congress, initiated a countrywide strike starting on June 3, 2024, in order to push for a higher minimum wage for workers along with the reversal of the recently raised Electricity prices. Nevertheless, the strike initiated by the Labour union was put on hold on June 4, 2024, for a duration of five days, following an agreement with the Federal Government to restart discussions and establish a revised minimum wage within the span of one week.
Thus, the government’s new proposal is still up in the air regarding whether or not it will be accepted by labour. Earlier on June 7, 2024, the Nigerian Governors Forum expressed that a minimum wage exceeding ₦60,000 would not be viable in the long term. Osifo, the President of TUC, argues that a minimum wage of ₦250,000 is necessary due to the ongoing challenges faced by workers. Negotiations between the Tripartite Committee regarding the minimum wage came to a standstill in the evening on June 7, 2024.
There is a divide within OPS in different regions regarding the proposal.
On June 7, the standstill occurred as organized labour dismissed the government’s proposal of ₦62,000 and instead called for an increased minimum wage of ₦250,000. The Nigeria Governors’ Forum (NGF) emphasized that the proposed ₦60,000 minimum wage by the federal government was deemed unsustainable. The forum expressed concerns about the potential inability of States to afford such an amount if it were to be approved. According to report, there is a divide within the Organised Private Sector (OPS) in different regions regarding the ₦62,000 minimum wage proposal.
Businesses in the south are ready to comply with the proposed wage, while those in the north are worried about their capacity to meet the requirements if the proposal becomes law. Raising the minimum wage could potentially have a negative impact on OPS members, as they already face difficulties such as dealing with multiple taxes, high Inflation rates, foreign exchange shortages, and other obstacles. This could lead to operational challenges and even result in job layoffs within their organizations.
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Additionally, Tripartite Committee’s recommendation to the President regarding the Proposed New National Minimum Wage emphasized the thorough consideration of various factors, including social, economic, and political aspects, along with adherence to relevant International Labour Organisation (ILO) Conventions and global standards. This recommendation was made on June 7, 2024. Senator Hope Uzodinma, the Governor of Imo State, spoke to the media following the meeting, announcing the OPS settled on ₦62,000 as the agreed upon minimum wage. On the other hand, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) stood firm on their demand for ₦250,000 as the minimum national wage.