
President Bola Tinubu has announced plans to consult with the 36 state governors and members of the organized private sector (OPS) before finalizing a new national minimum wage. This was disclosed by the Minister of Information and National Orientation, Mohammed Idris, during a briefing at the end of the Federal Executive Council (FEC) meeting presided over by President Tinubu.
Key Points:
- Consultations Before Submission: President Tinubu intends to consult with state governors and the OPS to arrive at an informed minimum wage figure. This figure will then be submitted to the National Assembly as an Executive Bill.
- Current Offers: The government and OPS have proposed a minimum wage of N62,000, up from the current N30,000. However, labor unions, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), are demanding a N250,000 living wage.
Reactions:
- NLC’s Stance: The NLC, represented by General Secretary Emmanuel Ugboaja, emphasized that the era of “slave wages” is over. They stressed the importance of tripartism—collaboration between the government, employers, and workers—in determining wages.
- NECA’s Warning: Adewale Oyerinde, Director-General of the Nigeria Employers Consultative Association (NECA), warned that any minimum wage above N62,000 could lead to a crisis and job losses. He highlighted the need for the government to suspend new electricity tariffs and additional taxes as conditions for accepting the proposed N62,000 wage.
Government’s Position:
Minister Mohammed Idris emphasized that the national minimum wage is not solely a federal government issue but also involves state and local governments, the OPS, and organized labor. The President will consider all stakeholders’ inputs before presenting the new minimum wage figure to the National Assembly.
Industry Perspectives:
- RainOil Ltd: Gabriel Ogbeche, Group Managing Director, stated that oil marketers have the flexibility to source products from various suppliers, including local refiners.
- Dangote Group: Rabiu Umar, Group Chief Commercial Officer, described the meeting as productive, emphasizing the need for ongoing discussions to advance the industry.
Implications:
The decision to consult widely reflects the complexity of setting a national minimum wage that balances workers’ needs with employers’ ability to pay. The consultations aim to ensure a fair and sustainable wage that does not lead to job losses or economic instability.
In conclusion, the Federal Government’s approach to determining the new national minimum wage involves comprehensive consultations with all relevant stakeholders to achieve an equitable solution. The process underscores the importance of collaboration and informed decision-making in addressing labor issues.
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