The Nigeria Governors’ Forum (NGF) has emphasized the need for a sustainable minimum wage to be reached in ongoing negotiations between the government and organized labor. The NGF reassured labor of governors’ commitment to paying workers an improved wage. However, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have warned governors against defaulting on the new minimum wage that would be approved during the ongoing negotiations.
In January, a tripartite committee comprising government, labor, and private sector representatives was constituted by President Bola Tinubu to assess the N30,000 minimum wage implemented during former President Muhammadu Buhari’s tenure. Recently, the NLC and TUC presented a proposal of N615,000 minimum wage to the committee.
During the May Day celebrations on Wednesday, the government refrained from announcing a new minimum wage, citing its reluctance to accept labor’s proposal. However, the NGF has stated that it is assessing each state government’s fiscal capacity and the potential effects of different proposals to determine an enhanced minimum wage that could be sustained by the states.
The NGF, in a communique issued at the end of its virtual meeting and signed by its Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, celebrated workers across the country for their dedication to service and patience as they work with the Federal Government, labor, organized private sector, and relevant stakeholders in arriving at an implementable national minimum wage.
“As members of the committee, we are reviewing our individual fiscal space as state governments and the consequential impact of various recommendations, to arrive at an improved minimum wage we can pay sustainably. We remain committed to the process and promise that better wages will be the invariable outcome of ongoing negotiations,” the communique read.
The NLC and TUC have demanded that the new Act should have a two-year life with an agreement for automatic adjustment in wages any time inflation exceeds 7.5 per cent. They have also demanded that every employer with up to five workers in his employ shall pay the new minimum wage and have asked for the strengthening of monitoring and compliance mechanisms to penalize non-complying state governments and organizations.
A top official of the NLC, who insisted on anonymity because he was not authorized to speak on the issue, stated that there is no fixed date yet for the meeting between the minimum wage committee and the Federal Government. The unions have placed their demand of N615,000 as the new minimum wage and are expecting an offer from the Federal Government.
The Adamawa State Chairman of the NLC, Chief Emmanuel Fashe, said the state governor had promised to pay the new minimum wage to workers of the state without subjecting it to any further negotiations or review with labor in the state. He, however, berated the governors for being too self-centered, even though the same cannot be said of all the governors as some have been very considerate in implementing the new minimum wage. He added that Governor Ahmadu Fintiri had shown himself as a workers-friendly governor hence the robust relations he enjoys with labor in his state.
Overall, the ongoing negotiation process between the government and labor remains a critical issue, and all parties will need to work together to reach a sustainable minimum wage that benefits everyone.