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Minimum wage: FEC defers decision on minimum wage

L-R: Head of Civil Service, Folashade Yemi-Esan; Chief of Staff to the President, Femi Gbajabiamila; Secretary to the Government of the Federation, George Akume, and President Bola Tinubu, during a meeting of the Federal Executive Council at the Presidential Villa in Abuja, yesterday.

From Juliana Taiwo-Obalonye, Abuja

Minister of Information and National Orientation, Mohammed Idris, has said President Bola Tinubu would engage in further consultations on the new national minimum wage before presenting an executive bill to the National Assembly.

Addressing State House correspondents after the Federal Executive Council (FEC), Idris said the Council deliberated on the matter and decided to step down the memo to enable President Tinubu to consult with state governors, the organised private sector and the organised labour.

He emphasised that the new national minimum wage was not just an issue for the Federal Government but one that affects the state governments, the local governments and the private sector.

The minister assured that President Tinubu would have an informed position after wider consultations, as the new national minimum wage is a national issue that requires input from all stakeholders.

The decision comes amid ongoing negotiations between the government and labour unions on a new minimum wage.

The tripartite committee meeting on new national minimum wage, the government team and the organised private sector, offered N62,000 from the current N30,000 at the end of the meeting, but the organised labour, comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) demanded N250,000.
The government had warned that such a high figure could lead to mass retrenchment and undermine the economy.

The Minister urged labour to consider the broader economic implications and the welfare of over 200 million Nigerians.

He highlighted the government’s efforts to alleviate the cost of living through initiatives like the Presidential Compressed Natural Gas programme.

The decision of the president to consult the relevant stakeholders is coming on the heels of the statement by president of the NLC, Joe Ajaero, that the organised labour had expected Tinubu to reach out to the members of the tripartite committee to harmonise the figure.

Ajaero hinged his position on the fact that there was a stalemate at the end of the tripartite committee meeting.

But Idris said: “I want to inform Nigerians here that the Federal Executive Council deliberated on that (report of the Tripartite Committee on New National Minimum Wage) and the decision is that 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, the local governments, and the organised private sector, and of course, the organised labour.
“That memo was stepped down to enable Mr. President to consult further, especially with the state governors and the organised private sector, before he makes a presentation to the National Assembly through an executive bill.

“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, like I said, is not just an issue for the Federal Government alone.

“It affects the state governments, the local governments, and also the organised private sector, and that is why it is called national minimum wage. It’s not just an affair of the Federal Government alone.

“So, Mr. President has studied the report, and he’s going to consult wider before a final submission is made to the National Assembly.”

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