President Bola Tinubu will meet with the Organised Labour in Abuja on Thursday to discuss a new minimum wage for Nigerian workers.
According to sources, the President has invited the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to a meeting scheduled for the Aso Villa in the country’s capital city.
President Tinubu will decide on the ₦62,000 proposal from the government and business sector, as well as the organised Lbaour’s ₦250,000 demand.
On June 25, the Federal Executive Council (FEC), led by the President, postponed consideration of the memo regarding the new minimum wage to foster deeper engagement with stakeholders.
Two days later, at the 141st meeting of the National Economic Council (NEC), Tinubu and Vice President Kassim Shettima met with governors of all 36 states and ministers to discuss a revised minimum wage for workers.
The Path to a New Wage
Efforts to establish a new minimum wage for Nigerian workers have been ongoing. The Minimum Wage Act of 2019, setting ₦30,000 as the minimum wage, expired in April 2024. This Act mandates a review every five years to align with current economic conditions affecting workers.
In January, President Bola Tinubu initiated a Tripartite Committee to negotiate a new minimum wage. This committee includes representatives from Organised Labour, federal and state governments, and the Organised Private Sector.
However, the committee failed to reach consensus on a realistic new minimum wage, prompting labour to declare an indefinite industrial action starting Monday, June 3, 2024. The strike paralyzed businesses, affecting airports, hospitals, the national grid, banks, the National Assembly, and state assemblies.
Labour argued that the current ₦30,000 minimum wage no longer meets the needs of Nigerian workers, especially considering inflationary pressures and the effects of recent government policies such as petrol subsidy removal and forex exchange unification.
Labour temporarily halted the strike on June 4, 2024, following assurances from the President that a wage exceeding ₦60,000 was being pursued.
Subsequently, leadership from the Trade Union Congress (TUC) and Nigeria Labour Congress (NLC) resumed negotiations with representatives from the Federal Government, states, and the Organised Private Sector.
As of Friday, June 7, 2024, both sides remained at an impasse. Labour reduced its demand from ₦494,000 to ₦250,000, while the government increased its initial offer from ₦60,000 to ₦62,000.
Both parties have submitted their reports to the President, who is expected to decide and forward an executive bill to the National Assembly for passage of a new minimum wage law, which he will then sign into law.