Federal Government Proposes New Minimum Wage

The Federal Government has revised its proposal for the national minimum wage, increasing it to N54,000 following a walkout by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) during recent negotiations.

A source within the ongoing meeting in Abuja disclosed the new proposal to Punch correspondent. This move comes after the initial offer of N48,000 was rejected by the labor unions, who had demanded a significantly higher wage of N615,000.

Joe Ajaero, National President of the NLC, criticized the government and the Organised Private Sector (OPS) for the breakdown in negotiations. He emphasized that the N615,000 demand was based on an analysis of the economic needs of an average Nigerian family.

In response, the Director-General of the Nigeria Employers Consultative Association, Mr. Adewale-Smatt Oyerinde, called the unions’ walkout unfortunate and urged a return to the negotiation table.

Ajaero justified the unions’ actions, stating that the proposed N48,000 wage was insulting and highlighted a significant disparity with the private sector, where the lowest-paid workers earn N78,000. He also accused the government of lacking transparency by not providing data to support its offer.

The Tripartite Committee on Minimum Wage, inaugurated by Vice President Kashim Shettima on January 30, 2024, aims to recommend a new wage ahead of the expiration of the current N30,000 wage in April. The committee, which includes representatives from federal and state governments, the private sector, and organized labor, has conducted public hearings across various regions to gather input.

Despite the ongoing negotiations and regional proposals varying from N447,000 to N850,000, the organized labor unions have collectively settled on N615,000 as a fair living wage. The outcome of these negotiations remains uncertain as both parties continue to push for their respective positions.