In a significant development, the Federal Government of Nigeria and Organized Labour have reached an agreement to set the new national minimum wage at N70,000.
This decision follows extensive negotiations and meetings involving President Bola Tinubu, organized labour leaders, and members of the tripartite committee responsible for determining the new wage.
The tripartite committee, which includes representatives from the government, the private sector, and organized labour, had initially presented two divergent figures to the President. The government and private sector proposed a minimum wage of N62,000, while organized labour demanded a considerably higher figure of N250,000.
Speaking to State House correspondents after the meeting, the Minister of Information and National Orientation, Mohammed Idris, confirmed that President Tinubu had agreed to raise the initial offer from N62,000 to N70,000.
Idris expressed optimism about the agreement, stating, “Today is a happy day for Nigeria.
After thorough consultations and discussions, both the Federal Government and Organized Labour have agreed on a new national minimum wage of N70,000, which we will submit to the National Assembly for legislation.”
Idris further highlighted that this decision aligns with President Tinubu’s commitment to improving the livelihoods of Nigerian workers.
He also mentioned additional government plans to invest significantly in infrastructure and renewable energy, which are expected to bolster the economy and create more job opportunities.
Addressing Broader Economic Concerns
The Minister emphasized that the government’s approach to this wage increase is part of a broader strategy to address Nigeria’s economic challenges.
He noted, “President Tinubu has assured us that there will be massive investment in infrastructure and renewable energy.
More funds will be allocated for the acquisition of CNG buses, aiming to make Nigeria more CNG-compliant. This transition to renewable energy is part of our commitment to sustainable economic growth.”
In addition to the wage increase, the government is taking steps to resolve other pressing issues, such as the demands of university staff unions.
President Tinubu has directed relevant ministers to address the concerns of the Academic Staff Union of Universities (ASUU), the Senior Staff Association of Nigerian Universities (SSANU), and the Non-Academic Staff Union of Educational and Associated Institutions (NASU).
The President has tasked the ministers to explore modalities for settling withheld salaries and other outstanding issues.
A New Era for Wage Reviews
Minister of State for Labour and Employment, Nkeiruka Onyejeocha, highlighted a significant change in the frequency of minimum wage reviews.
“The review of the minimum wage policy has been reduced from five years to three years. This change ensures that wage adjustments can be made more frequently in response to economic realities,” she said.
Onyejeocha also reassured that the government is committed to ensuring the prompt payment of withheld salaries for university staff, demonstrating President Tinubu’s compassionate leadership.
She stated, “The President has directed the Minister of Finance and the Minister of Budget and Economic Planning to work out the modalities for settling the outstanding payments to university staff.”
Labour’s Response and Future Negotiations
NLC President, Comrade Joe Ajaero, acknowledged the economic circumstances that led organized labour to accept the N70,000 minimum wage. He emphasized that the agreement includes a provision for wage reviews every three years, which allows for more timely adjustments.
“Rather than waiting for five years, we can now negotiate wage increases more frequently, which is a significant improvement,” Ajaero said.
Ajaero also mentioned that other critical issues were discussed during the meeting, including the recent police actions against labour members in Abuja and the President’s commitment to addressing these concerns.
TUC President, Comrade Festus Osifo, reiterated the importance of the new wage review policy and praised the President’s proactive approach.
“We have been advocating for more frequent wage reviews. The agreement to review the minimum wage every three years is a major victory for Nigerian workers,” Osifo said.
Legislative Action and Broader Implications
Speaker of the House of Representatives, Tajudeen Abbas, assured that the new minimum wage bill would receive accelerated action. He commended President Tinubu for his leadership and commitment to addressing the needs of Nigerian workers.
“This agreement reflects the President’s profound understanding of the challenges facing Nigerian workers. It aligns perfectly with his Renewed Hope agenda,” Abbas said.
The question remains whether the organized private sector can meet the new minimum wage without government support.
This concern highlights the broader economic implications of the wage increase and the need for sustained economic growth to support higher wages.
Meanwhile, the agreement to set the new national minimum wage at N70,000 marks a significant milestone in Nigeria’s labour relations. It reflects a commitment to improving the living standards of workers while addressing broader economic challenges. As the government prepares to submit the new wage bill to the National Assembly, the focus will be on ensuring that this agreement translates into tangible benefits for all Nigerian workers and contributes to the nation’s economic recovery and growth.
