New Minimum Wage: Tinubu inaugurates 37-man tripartite committee

Tinubu-3-1
  • tasks them on speedy resolution, workers friendly wage
  • We will try and get the best for Nigerian workers, masses – TUC President
  • With economic realities, asking for salary increase is not too much – NLC
  • It will make meaning if food price is brought down – NACCIMA

From Juliana Taiwo-Obalonye, Abuja

 

President Bola Tinubu represented Vice President Kashim Shettima has inaugurated the Bukar Goni Aji-led 37-man Tripartite Committee on National Minimum Wage at the State House, Abuja.

 

The tripartite Committee is tasked with the responsibility of proposing a new national minimum wage for Nigerian workers.

 

According to the country’s Labour law, the minimum wage undergoes review every five years. Notably, the Minimum Wage Act, signed by Former President Muhammadu Buhari in 2019, set the minimum wage at N30,000 for both federal and state workers. However, many states continue to owe workers and fail to implement the agreed wage.

 

While inaugurating the committee comprising representatives of federal and state governments, as well as the private sector, and organized Labour, the president emphasised the need of contract adherence, urged good faith collective bargaining, and encouraged outside committee consultations.

 

He further urged committee members to promptly reach a resolution and submit their reports.

 

He stated that the new national minimum wage should be grounded in principles of social justice and equity.

 

Tinubu highlighted the importance of a fair minimum wage saying, “The minimum wage represents the least amount of compensation an employee should receive for their labor, and as such, it should be rooted in social justice and equity.”

 

Recognizing the imminent expiration of the last Minimum Wage Instrument, he stressed the need for a fair and decent living wage.

 

He acknowledged the short-term consequences of economic decisions and assured that the government is addressing measures to mitigate the effects on workers and the populace.

 

“While the decisions we have taken to save the economy are inevitable, we are not unaware of the short-term consequences.

 

“We believe that government is a continuum, and, as such, we have intervened in the systemic delays that undermined our economic growth.

 

“Since the removal of the subsidy, various committees have been established to examine and make recommendations to the government on measures to cushion the envisaged painful effects of the increase on workers and the Nigerian populace at large.

 

“I am pleased to share that action has since commenced on the implementation of the outcome of those agreements and initiatives.

 

President Tinubu directed all stakeholders, including Ministers, Governors and private sector employers to be actively involved in the committee’s deliberations.

 

He also instructed the Minister of Finance to allocate necessary funds and resources to facilitate the committee’s work.

 

Emphasizing the need for timely recommendations, he urged the committee to conclude deliberations promptly and submit their report.

 

President Tinubu announced that the government’s decision, based on the Committee’s recommendations, would be presented as an Executive Bill to the National Assembly.

 

He reminded the Committee to adhere to the principles of full consultation with Social Partners, aligning with international conventions such as the International Labour Organization Minimum Wage Fixing Convention No. 131 and Minimum Wage Fixing Machinery Convention No. 26.

 

The Secretary to the Government of the Federation (SGF) highlighted President Tinubu’s support for Nigerian workers and the formation of a tripartite committee to hasten the decision-making process.

 

He stressed the need for a realistic approach aligned with economic conventions and the current state of the Nigerian economy.

 

Akume said “Well, first of all, let me say that the President Bola Ahmed Tinubu, has tremendous love and respect for the Nigeria workers. And that is why he approved generously for the inauguration of the tripartite committee and charged them to move very fast.

 

“He has provided logistics he want us to move forward. We don’t have any figures in mind. We want a very, very realistic approach based on certain conventions, based on the reality of the Nigerian economy, base also on what you have in our neighboring countries in West Africa.

 

“Nigerian workers, everyone deserves a rise in his pay package. Honestly, we want a situation where Nigerian workers are sufficiently motivated to work for the common good.

 

“Once they are sufficiently motivated they would do very well. Because they are productive, because they are creative, they are full of initiatives, and human resource base, I want to believe and strongly too that is second to none in Africa. That is why we’re here today to ensure that our actions are in line and in conformity with the law and expectations and aspirations with the Nigerian worker. “

 

Speaking to State House Correspondents, Niger State Governor, Umar Bago, expressed the government’s commitment to the welfare of Nigerian citizens.

 

He acknowledged challenges faced by sub-nationals but emphasized collaboration with the federal government to address them.

 

Anticipating potential issues, he highlighted the importance of discussing challenges together.

 

“We don’t want to preempt the outcome of this meeting, but you need to understand that the sub-nationals also have challenges and that the federal government, in its own wisdom, has brought the sub-nationals into perspective and this discussion will be done together with the sub-national, so I’m not sure we’re going to foresee any challenge,” he added .

 

Regarding funding, the governor mentioned exploring alternative methods and expressed confidence in the economy’s backward integration as a means to overcome financial hurdles.

 

“The government aims to stand tall against challenges through these collaborative efforts and innovative approaches,” he added.

 

The Minister of State of Labour, Nkeiruka Onyejeocha stressed the urgency of concluding discussions on the minimum wage increase before April 1st, citing legal obligations.

 

She expressed optimism about expediting the process, acknowledging the longstanding discussions on the matter since the previous year.

 

On his part, the chair of the committee and former Head of the Civil Service of the Federation, Aji, assured that the committee will deliver on their assignments and promptly too.

 

He added that the committee shall make extensive consultation in order to arrive at a new national minimum wage that will be fair and implementable.

 

“We shall, by God’s grace, carry out extensive consultations with key stakeholders to arrive at a new minimum wage that is fair, practical and implementable,” he said.

 

The President of Trade Union Congress (TUC), Festus Osifo, on if the workers were bringing a figure to the table of negotiation, said: “You would remember that, as at that time when we proposed that N200,000 minimum wage, if you can recall, that even inflation had not gotten to where it is today. If you also recall as at when we were doing that proposal, the official exchange rate was somewhere around N450 to $1. You could also recall as well that the parallel market rate as then was somewhere around N700 to $1. But today, all these have been shattered. What that means is that we’ll go back to the drawing board. Because, Nigerian workers are battered as we speak, I mean the pay today literally is nothing.

 

“So the Nigeria workers as we speak now are going through excruciating period. In fact, we’ve had lots of minimum wage negotiations over the years, but this one will stand out. It will stand out because we have never seen a time like this in Nigeria. So this is a period where people are passing through pains. In fact the purchasing power of an average Nigerian worker and indeed the entire Nigeria masses has been eroded. So we are going to put on our thinking cap we are going to press to get the best for the working people of Nigeria.”

 

Deputy President of Nigeria Labour Congress (NLC), Ambali Olatunji also aligned with the TUC President’s position.

“I think what is going to happen is commitment from the government and the negotiators. If the workers today are expectant, they want a ruburst minimum wage, I believe there won’t be any rigidity coming from the angle of the government. So I’m in line with what my TUC President said”, he said.

 

Life Vice President of Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Humphrey Ngonadi, while welcoming government’s good intention, said it has has to find a way to bring down the cost of food stuff else it will be meaningless.

 

He said: “Well, I thank God for this initiative that government is taking at this place. But I’m a bit worried. We may remember some time long ago, there was an Udoji award done. And that was the first time the salary of the workers were increased and immediately after the increment the commodity in the market run up to meet it. So, while we are talking about minimum wage, I think the government on their own side has to think on how to bring down the price of commodities in the market.

 

“If a worker is paid N1 million as a minimum wage and a bag of rice is N900,000, the N1 million still has no meaning. So while we are thinking of minimum wage to hike the salary of the workers, the government on their own side has to think how that money will add value. Having value is if a bag of rice that was 8000 yesterday is now 50,000 and you increase the salary of the workers and the price of rice will be N100,000 or N200,000. The salary you increased has no value.

 

“So, I think the government is going now in the right direction. Also, while we increase the salary of the workers let the government work on the price of commodities to come down. If the dollar will step down now, the price of a commodity will step down. My mind is going that way.”

 

Members of the committee from the Federal Government include: Minister of State, Labour and Employment (Representing Hon. Minister of Labour and Employment); Nkeiruka Onyejeocha, Minister of Finance & Coordinating Minister of the Economy; Mr. Wale Edun, Minister of Budget Economic Planning; Alhaji Atiku Bagudu, Head of the Civil Service of the Federation; Folashade Yemi-Esan, Permanent Secretary, General Services Office (GSO) OSGF, Maurice Mbaeri, and Chairman/CEO, National Salaries, Incomes and Wages Commission (NSIWC) – Member/Secretary, Ekpo Nta.

 

Members from the State Government, include: Mohammed Bago, Governor, Niger State- representative from North Central; Bala Mohammed, Governor Bauchi State- representative from North East; Umar Radda, Governor Katsina State- representative from North West; Charles Soludo, Governor, Anambra State- representative from the South East; Ademola Adeleke, Governor, Osun State- representative from South West; Otu Edet, Governor, Cross River State- representative from South South.

 

From the Nigeria Employers’ Consultative Association (NECA)- Adewale-Smatt Oyerinde, Director-General, NECA; Chuma Nwankwo; Thompson Akpabio with also members from the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) include Michael Olawale-Cole, National President; Ahmed Rabiu, National Vice President and Humphrey Ngonadi (NPOM), National Life President.

 

The membership from the National Association of Small and Medium Enterprise (NASME) are Abdulrashid Yerima, President and Chairman of Council; Theophilus Okwuchukwu, Private Sector representative; Muhammed Bello, Zonal Vice President, North West and also from the Manufacturers Association of Nigeria (MAN) are: Grace Omo-Lamai, Human Resource Director, Nigerian Breweries; Segun Ajayi-Kadir, Director-General, MAN; Ada Chukwudozie, Managing Director, Dozzy Oil and Gas Limited.

 

From the organised labour, the Nigeria Labour Congress (NLC) Joe Ajaero, President, NLC; Emmanuel Ugboaja; Adeyanju Adewale; Ambali Olatunji; Benjamin Anthony and Theophilius Ndukuba.

 

Also, membership from the Trade Union Congress of Nigeria (TUC) include, Festus Osifo, President, TUC; Tommy Okon, Deputy President I, TUC; Kayode Alakija, Deputy President II; Jimoh Oyibo, Deputy President. III; Nuhu Toro, Secretary-General and Hafusatu Shuaib, Chairperson Women Commission.

 

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