The National Assembly will Tuesday get an executive bill on the new national minimum wage following an agreement between President Bola Tinubu and labour leaders on higher remuneration for workers.
On Thursday, the President and the Nigeria Labour Congress and the Trade Union Congress of Nigeria led by their presidents, Joe Ajaero and Festus Osifo, respectively, agreed on N70, 000 as the new national minimum wage during their meeting at the Aso Presidential Villa, Abuja.
The wage will replace the N30, 000 minimum wage that expired on April 18, 2024.
The Tripartite Committee on the New National Minimum Wage set up in January had submitted two separate figures to the President following a disagreement among the stakeholders.
While the government team and the organised private sector proposed N62, 000, organised labour demanded N250, 000.
On receiving the committee’s report, the President asked for more time to consult the relevant stakeholders to harmonise the figures before transmitting an executive bill to the National Assembly.
Subsequently, he held meetings with the organised private sector and the sub-nationals on a nationally acceptable minimum wage.
Nevertheless, the Nigeria Labour Congress threatened to shut down the country for a month if the National Assembly decides to deregulate the national minimum wage.
“Trust this government; they will create taxes to make sure that no worker takes home more than half of the amount. See what is happening with AEDC where you can’t even understand how the billing is going. This is how it is in every sector. So, how can we benefit from what cannot solve our problems? Honestly speaking, salary increase is not the solution to our bastardized economy”
NLC president, Joe Ajaero said that a Joint Committee of the Senate, House of Representatives, and the Judiciary is considering removing Section 34 from the Exclusive Legislative List to the Concurrent List.
This change would allow state governors to set their own minimum wages, effectively abolishing the national minimum wage.
The Ajaero-led NLC executive warned that if such a law is passed, it would result in significant disruption.
“The very moment the House of Representatives and the Senate come up with such a law that will not benefit Nigerian workers, they will be their drivers and gate men, and there will be no movement for one month,” he threatened.
Though there have not been any reactions from the National Assembly regarding the allegations, experts in their divergent opinions have preferred solutions on how to make the proposal workable at all levels without crises erupting in the middle of the game.
An economist and analyst, Oyibo Eke, began by commending President Bola Tinubu and the labour leaders for reaching a common ground after a protracted disagreement that almost disrupted governance.
Eke said, “That the Federal Government and the organised labour have agreed on the minimum wage is good news for the country. Nigeria as it is now does not need such squabbles that went on in the process of workers demanding for their due but be that as it was, the first step of agreeing that the salary of Nigerian workers is miserable by both parties is commendable. Then, whether the amount, N70, 000 worth a monthly take home pay for the least paid Nigerian worker is another question. Now that there’s a common ground, what we should be concerned with is the workability in both the public and private sectors. There’s apparently indication that more dust has been raised with this pegging because of the economic situation in the country.
“Already the state governors are divided over the amount and if some states are saying that they cannot pay such an amount as minimum wage, what will happen with the private sector? Mind you when we talk about the private sector and minimum wage, it involves a cleaner or housekeeper hired by an individual. A shop owner who hires the services of a sales boy or girl will be bound by the law to pay the employee N70, 000 as minimum wage. This is one of the implications that people are not considering. The thought is that minimum wage is for the government workers and those employed by the conglomerates but that is not true.
“Again, while some of the workers might be celebrating, we are tempted to ask who the beneficiaries are. When you look critically at the economic situation in the country where inflation has taken the geometric flight, a bag of rice costs more than a monthly take home salary of an average Nigerian worker when this new wage is implemented, prices of beans, garri, and other foodstuffs are increasing per minute, then you will understand our worry. So, what is there is that the salary increase will be a catalyst for further skyrocketing of prices of goods and services because transport fares will as well be jerked up.
“Now we can see that even the workers are not beneficiaries of the much debated wage increase. I’ve been saying and still saying that this is not the solution to workers’ economic woes. If you ask me, I will say the government should tackle the soaring prices of goods and services, arrest it by way of price control before delving into increasing worker’s wages because of the multiplier effect that will certainly cause more woes and pains. What I have said in effect is that minimum wage is not the solution, more so, when it cannot take care of the needs of an average family.”
An employee in the public sector, David Aduba, in his reactions to those celebrating and commending the government for pegging the minimum wage at N70,000 said “Exchange rate conversion of 1 dollar at N1,600 is equal to $44. A bag of rice is N76,000 for the cheapest brand. So, if a bag of rice is taking 100% and more of a worker’s living wage monthly, what happens to other important factors of his/her life apart from food? Those celebrating show that they are not hungry and angry enough.”
Aduba argued that the organised labour did not hold the government well in the bargain.
“How can you be bargaining for the well-being of the workers and you allow the government to dictate the process? Our leaders, I mean the NLC and TUC tried and showed they have the interest of the workers at heart but they failed to understand the government in power.
“They followed them with good mind and understanding, respecting their views and opinions but those of them in the government never cared about us. This is where the mistake was made. While the discussion was on, we heard what those of them in government said. One of them said even though we are suffering, they must purchase a jet for the President because his life is more important than the ordinary Nigerians. Can you imagine such a statement and yet NLC and TUC did not act immediately. I’m not calling for any revolution but look at what is happening in Kenya. They are getting it right there but we will make noise and when they dangle a little carrot to us we begin to celebrate. Why must anyone be happy that a country where food is not for the poor, paltry N70, 000 has been proposed for minimum wage and everybody is praising the government? Something is wrong with us, sincerely.
“You are asking who the beneficiaries are. The answer is simple. The government of course. The taxes we are paying in this country now are outrageous. Trust this government; they will create taxes to make sure that no worker takes home more than half of the amount. See what is happening with AEDC where you can’t even understand how the billing is going. This is how it is in every sector. So, how can we benefit from what cannot solve our problems? Honestly speaking, salary increase is not the solution to our bastardized economy. I hope this government is not celebrating this. President Tinubu should go beyond this predictable act to tackle the prices of goods and services in the country.
“The same way his administration is churning out taxes even with disregard to the plight of the common man, he should tackle the skyrocketing prices of goods and services. Anyway, let’s wait and see if the government will begin the implementation of the new wage from May as they promised before believing that the matter has been settled. This one NLC is warning the National Assembly not to tamper with the law that made minimum wage an exclusive power of the Federal Government; it means there’s a boo-boo trap by the lawmakers to truncate this. If truly there’s any, then it’s most unfortunate,” he said.
A civil servant Ndu Ndukakwu, wondered why anybody thinks it’s good enough to pay an average Nigerian worker N70, 000.
“If you think N70,000 ($41) is good enough for someone to be paid after working for a month, remember someone out there in the U.S, Canada, U.K and the likes are earning this per hour. For some people it’s their two hours pay while it is 30 minutes pay for some people who are high earners. That amount is a peanut compared to what those in government answering our leaders earn. It should not be accepted. Imagine a family of four living on N70, 000 in a country like Nigeria where everything is very costly.
“Before receiving the salary, it is finished. They will perpetually live in debt. That is why hypertension is raging and people are dying almost every minute. I cannot join in the celebration of paying a worker such an amount after putting 28 to 31 days of his time to work for his/her country. You know what; this is the foundation of corruption in the civil service. If there is no money to pay workers fat salaries, where are the top government officials getting the billions and hundreds of millions of naira they are stealing?”
Another civil servant, Christian Alumona, while noting that the amount was too little to compare with the hard economic situation in the country, said, “How can I cope with N70, 000 minimum wage when a bag of rice is almost N100, 000?
“How can we survive as civil servants? This is a difficult one. I expected a minimum wage of N100, 000 to N150, 000,” he said.
He equally noted that the amount would not be the same again after consequential adjustment had been made, saying it may be reduced to N60, 000 after deductions.
For Elizabeth Igweokolo, a civil servant, it’s not time to be happy. She said she was not happy with the announcement of N70, 000 minimum wage because she was expecting the minimum wage that with or without inflation could buy a bag of rice at least.
“The amount won’t do anything for us, it cannot fuel our car comfortably for a month as a litre of fuel is sold at N780 when you see it in the filling station and these black marketers sell for N100 per liter and a bag of rice is sold at N78, 000 and N86,000. So do the calculations and see that it is even worse than receiving N18, 000 where a bag of rice was sold for N6, 000.
“With that amount, it is going to be difficult for civil servants. I was expecting at least N100, 000 minimum wage. At least let the minimum wage be higher than the price of a bag of rice, not vice versa.”
A lawyer and social commentator, Jeanbosco Ayuba, was concerned with the sincerity of the government in all these.
He said his fears are that the implementation of the new wage is dependent on the amendment of the existing law on wages and salaries and going by the comments filtering from the National Assembly during the course of the struggle, he doesn’t seem to believe the disparity is over.
“Landlords will increase rents, school fees will be increased, electricity bills will increase and more will be expected, transport fares, then foodstuffs will become no-go areas”
“Yes the Federal Government has agreed to peg workers’ minimum wage at N70, 000. Good and fine. But has anyone bothered to ask how sincere this decision is when the implementation process will begin with amendment of a section of the Constitution by the National Assembly.
“I learnt the President will send an Executive Bill on this to the National Assembly on Tuesday which is expected to be considered and passed into law to replace the existing one. But one thing is worrisome here. The National Assembly did not hide their resentment in labour’s pursuit of the increase of their wage. And the NLC President, Joe Ajaero has even preempted them by warning that any attempt to remove the national minimum wage which is Section 34 from the Exclusive Legislative List to the Concurrent List will be vehemently resisted. What that means is that he has got the hints of where they are heading for. That’s why I am strongly skeptical about the sincerity of the government in all these.
“Another worry I have about this is that the same workers government is celebrating that their salary has been increased and will know what is real suffering from now. Do you know why? Their responsibility will increase. Landlords will increase rents, school fees will be increased, electricity bills will be increased and more increase expected, transport fares, then foodstuffs will become no-go areas.
“Then what is the benefit? So, this wage increase is not and can never be the solution to Nigeria’s economy and the government knows it but it is not interested in solving it because those in power are benefiting from the system. See how they are choking Nigerians with tax. You slept the previous night only to wake up to hear of a new tax introduced and must take immediate effect. Can’t the same government take such decisions on the prices of goods and services? This is where the solution to our economic problems lies and until that is done, if they like to let them make minimum wage N700, 000, it will still be worthless.”
On whether the Federal Government will live up to its promises to pay the new wage from May this year, Ayuba said, “governments of Nigeria particularly since the APC took over, have been synonymous with promises and failure. I don’t want to conclude on that but I am afraid they may come up with a reason or another that would make the beginning of the payment from May not feasible again. But if it is a credible government, nothing should stop it from fulfilling its promises.”
