President Bola Tinubu has directed the Minister of Finance, Wale Edun, to present the cost implications for a new national minimum wage within 48 hours.
This directive was given during a meeting with the federal government’s negotiation team on the minimum wage at the State House on Tuesday, June 4th.
The move comes after negotiations between the federal government, organized labor, and the private sector reached an impasse over the proposed minimum wage figures as reported by Nigerian Tribune.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had demanded a monthly minimum wage of N494,000, a staggering 1,547% increase from the current N30,000 minimum wage set in 2019.
However, the government and the organized private sector had offered N60,000, representing a 100% increase.
The tripartite negotiations, which began before the end of May, failed to reach a consensus, leading to the labor unions declaring an indefinite nationwide strike that commenced on Monday, June 3rd.
The unions cited the government’s inability to agree on a new minimum wage and the hike in electricity tariffs as reasons for the industrial action.
During the meeting on Tuesday, President Tinubu emphasized the need for a balanced and sustainable solution that considers the welfare of Nigerian workers while also accounting for economic realities.
According to the Minister of Information and National Orientation, Mohammed Idris, the President directed Edun to “do the numbers and get back to him between today and tomorrow so that we can have figures ready for negotiation with labor.”
Idris stated that the President is determined to accept the committee’s resolutions on the new minimum wage while also prioritizing the welfare of Nigerians.
He stressed that the government is not opposed to wage increases but aims to ensure a balance between its commitments and the economic realities on the ground.
The President has also directed the government representatives to collaborate with the organized private sector and state governments to achieve an affordable, sustainable, and realistic wage award for all Nigerians.
Idris emphasized that the wage award is not solely a federal government matter, as sub-nationals and the organized private sector are also involved.
“The President has given a marching order that all those who have negotiated on behalf of the federal government and all those who are representatives of organized private sectors, the sub-nationals, come together to have a new wage award that is affordable, sustainable, and also realistic for Nigerians,” Idris stated.
The Minister of Information reiterated the government’s commitment to ensuring that any promises made regarding the new minimum wage are realistic and sustainable. “We will work assiduously to ensure that whatever promises the government makes are promises that will be kept,” Idris said.
With the labor unions suspending their strike for one week to allow for further negotiations, the government is working to present a new minimum wage figure that meets the expectations of all stakeholders within the given timeframe.
The minimum wage issue has been a contentious one, with labor unions arguing that the current wage is inadequate to meet the rising cost of living, while the government and private sector cite economic constraints and the potential for job losses if wages are increased significantly.
President Tinubu’s directive to the Finance Minister underscores the administration’s commitment to finding a middle ground that balances the welfare of Nigerian workers with the country’s economic realities.
By involving all stakeholders and seeking a sustainable and realistic solution, the government aims to resolve the minimum wage impasse and prevent further disruptions to economic activities.
As the negotiations continue, all eyes will be on the Finance Minister’s presentation of the cost implications within the 48-hour deadline set by the President.
The outcome of these deliberations will have far-reaching implications for Nigerian workers, employers, and the overall economy.
Leave a Reply