Nigerian President, Mr. Bola Ahmed Tinubu has assured the Organised Labour that an executive bill regarding the new national minimum wage for workers will soon be sent to the National Assembly for passage.
Tinubu made this announcement on Wednesday during his second Democracy Day speech on Wednesday, June 12, 2024.
“In this spirit, we have negotiated in good faith and with open arms with Organised Labour on a new national minimum wage. We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,” the President stated.
In light of the Labour’s national strike on June 3, 2024, it is noteworthy that none of the leaders from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) were arrested or threatened.
“Instead, the labour leadership was invited to break bread and negotiate toward a good-faith resolution,” he stated, emphasizing that “reasoned discussion and principled compromise are hallmarks of democracy.”
‘Reforms Will Fix Hardship’
Tinubu acknowledged the economic challenges faced by the nation and expressed empathy towards Nigerians, promising the “necessary repairs required to fix the economy.”
“The reforms we have initiated are intended to create a stronger, better foundation for future growth. There is no doubt the reforms have caused hardship. Yet, they are necessary repairs required to fix the economy over the long run so that everyone has access to economic opportunity, fair pay, and compensation for their endeavor and labour,” he said.
Long Walk To New Wage
Discussions regarding a new minimum wage for Nigerian workers have been ongoing. The Minimum Wage Act of 2019, which set the minimum wage at ₦30,000, expired in April 2024. This Act requires review every five years to align with contemporary economic demands of workers.
In January, President Tinubu established a Tripartite Committee to negotiate a new minimum wage. The committee includes representatives from the Organised Labour, federal and state governments, and the Organised Private Sector.
However, the committee members failed to reach an agreement on a new realistic minimum wage, prompting labour to declare an indefinite industrial action on Monday, June 3, 2024. This strike led to the shutdown of businesses, airports, hospitals, the national grid, banks, the National Assembly, and state assemblies’ complexes.
The labour unions argued that the current minimum wage of ₦30,000 is insufficient for the average Nigerian worker, urging the government to propose an economically realistic wage in light of current inflationary pressures and the effects of the petrol subsidy removal and unification of the forex windows by the current administration.
Labour “relaxed” its strike on June 4, 2024, following assurances from the President that he was committed to a wage above ₦60,000.
Both TUC and NLC leadership resumed talks with representatives from the Federal Government, states, and the Organised Private Sector.
On Friday, June 7, 2024, the two sides (labour and the government) still failed to reach an agreement. Labour reduced its demand from ₦494,000 to ₦250,000, while the government increased its offer from ₦60,000 to ₦62,000.
Both sides have submitted their reports to the President, who is expected to make a decision and send an executive bill to the National Assembly to pass a new minimum wage bill to be signed into law by the President.