In a landmark decision, the Federal Government and the leadership of the Organised Labour have agreed to a new minimum wage of ₦70,000 for Nigerian workers, according to the Minister of Information, Mohammed Idris.
The agreement was finalized during a meeting in Abuja on Thursday between President Bola Tinubu and the leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
Minister Idris, addressing State House correspondents, expressed satisfaction with the outcome. “We are happy to announce today that both the Organised Labour and the Federal Government have agreed on an increase from the previous ₦62,000 minimum wage. The new national minimum that Mr. President is expected to submit to the National Assembly is ₦70,000,” Idris stated.
Flanking the minister during the announcement were NLC President Joe Ajaero, TUC President Festus Osifo, Labour Minister Nkiruka Onyejeocha, and other key officials.
Wage Reviews to Occur Every Three Years
NLC President Ajaero confirmed the new ₦70,000 benchmark and emphasized that future reviews of the minimum wage would occur every three years instead of the previous five-year interval. He noted that Organised Labour would consult with their members regarding the new wage figure.
“We were here last week, and we are here now. What they have announced, in terms of ₦70,000, is where we currently stand. However, we will not wait another five years for another agreement,” Ajaero remarked.
Labour Minister Onyejeocha added that President Tinubu had instructed the Ministers of Finance and Budget, Wale Edun and Atiku Bagudu, to develop strategies to address the issues concerning the Senior Staff Association of Nigerian Universities (SSANU) and the Non-Academic Staff Union of Educational and Associated Institutions (NASU).
This agreement follows a series of intensive discussions between labour leaders and the President, which came after several months of failed negotiations involving a tripartite committee on minimum wage, formed by the President in January. The committee, including representatives from state and federal governments as well as the Organised Private Sector, initially proposed ₦62,000, while labour demanded ₦250,000 to replace the current ₦30,000 minimum wage.
Labour leaders had argued that ₦30,000 was insufficient given the high inflation and cost of living exacerbated by the removal of petrol subsidies.
During a meeting last Thursday, President Tinubu urged labour leaders to maintain realistic expectations regarding the minimum wage, stating, “You have to cut your coat according to available cloth. Before finalizing the minimum wage process, we must consider the structure.”
In his Democracy Day speech on June 12, 2024, President Tinubu announced plans to send an executive bill on the new national minimum wage to the National Assembly for passage. Minister Idris confirmed that the ₦70,000 agreed amount would be communicated to the National Assembly in the coming days.
