FG, Labour Agree On N70,000 National Minimum Wage

FG, Labour Agree On N70,000 National Minimum Wage

*Tinubu says he’s being careful not to make mistakes in driving economy along with labour

The federal government and organised labour on Thursday, agreed on N70,000 as the new national minimum wage for Nigerian workers during a meeting on the contentious issue.

The meeting, the second in seven days, was held at the instance of President Bola Tinubu at State House, Abuja. It had in attendance representatives of both the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), led by their respective presidents, Comrades Joe Ajaero and Festus Osifo, respectivel.

Tinubu explained to the labour leadership that in pegging the monthly minimum wage at N70,000 he took into consideration economic variables in the country.

According to a release issued by his media adviser, Ajuri Ngelale, the president stressed, “We must look at the parameters of things. Here, I have a speed limit, and I must pay attention to traffic warnings; slippery when wet, curved roads, and be careful not to have an accident. That is why I went as far as having this meeting today.

“We are driving this economy together. Let us look at the tenure of review. Let us agree on that, and affirm three years. Two years is too short. We affirm three years. We will review.

“I am going to move from the tripartite committee. I am going to edge a little bit forward, looking at the review that we have done. Yes, no one in the federal establishment should earn less than N70,000. So, we are going to benchmark at N70,000.”

President Tinubu explained the federal government’s offer to increase the national minimum wage from N62,000 to N70,000, with an assurance that it would be reviewed after three years, instead of five years.

The president said he had to intervene in the negotiations, knowing the economic challenges faced by many Nigerians, and the need to provide urgent succour.

He was quoted as telling the labour leaders, “I have heard all your presentations. You came here with the intention to get something on behalf of your members. It has been tough globally. And if you review my track record, I have never been found wanting in ameliorating the problems of workers. I belong to the people and to all of you in leadership. Without you, this job is not interesting.

“You challenged the thinking faculty of leadership, and we have reviewed the position. I have consulted widely, and when the tripartite committee submitted their reports, I reviewed them again and started to think and rethink.

“Last week, I brought the workload to you because we have a timeline. We have a problem, and we recognise that you have a problem too. We are in the same economy.

“We are in the same country. We may have different rooms, different addresses, and different houses; we are just members of one family that must care for each other.”

Tinubu explained that renewing the hope of Nigerians extended to providing infrastructure that would improve their livelihoods and create an inclusive economy that all could participate and benefit.

He added that the government was committed to reducing the cost of transportation with the introduction of Compressed Natural Gas (CNG)-powered buses, which will be cheaper and efficient, and also assured the labour unions of providing buses that will be deployed across the country.

The president said the entitlements of members of the Senior Staff Association of Nigerian Universities (SSANU) and Non-Academic Staff Union of Universities and Allied Institutions (NASU) would be considered. He urged the Ministries of Finance, and Budget and Economic Planning to look at the possibility of clearing the backlog.

At the meeting, Secretary to the Government of the Federation (SGF), Senator George Akume, thanked the president for his consideration of the issues, as the “father of the nation”, and scheduling of two meetings to resolve the initial impasse.

Akume stated, “Mr. President, at the tripartite meeting, and the resolutions of the government, organised private sector and labour unions, we were all united as one family to promote and grow our economy, and deepen our democracy, by implication, to the benefit of all. Basically, that is what we are saying today. We have a listening president here.”

After the two-hour meeting, Minister of Information and National Orientation, Mohammed Idris; Minister of State for Labour and Employment, Hon. Nkeiruka Onyejeocha; Ajaero; and Osifo took turns to brief newsmen on the outcome.

Idris told reporters that both the federal government and organised labour settled for N70,000 as minimum wage for the least paid Nigerian worker. He also said the president promised Nigerians massive investment in infrastructure and renewable energy as boost in the wake of the wage increase issue.

Idris added that the withheld salaries of SSANU and NASU members in public universities were to be immediately addressed by Tinubu.

He stated, “Today is a happy day for Nigeria. You recall that last week, we had a meeting here and the organised private sector and the sub-nationals have also held their various meetings with Mr. President following the submission of the tripartite agreement to Mr. President.

“Labour came last week. They had meeting with Mr. President. They asked for adjournment for a week to go and consult further. They did those consultations. They have come back today and we have met with Mr. President.

“We’re happy to announce today that both the federal government and organised labour have agreed on an increase on the N62,000. The new national minimum wage that we expect us to present to the National Assembly for legislation is N70,000.

“But that is not all. There is also a boost, like Mr. President has assured in ensuring that massive investment is going to be made in the area of infrastructure. There is also a deepening of the investment of the federal government in renewable energy.

“More money is going to go into the acquisition of more buses, the CNG buses. Nigeria is going to be more CNG-compliant, according to the president.

“We’re moving in this transition to renewable and all other things that Mr. President has assured labour.

“The issue of SSANU and NASU is also going to be looked at. And we are happy, we are very thankful of the role that the organised labour has played today.

“They recognised the federal government’s role in ensuring that we have the local government autonomy, and also ensuring that both the organised labour and the government are on the same page today.

“They have seen the magnanimity of the president and today the leadership of labour said they didn’t come here for negotiation. Not at all, they came here in that deep sense of patriotism to ensure that Nigeria remains united, Nigeria becomes more prosperous and it is in that spirit that they are in agreement with what the federal government has done today.

“We want to thank labour for their patriotism. We also want to thank Mr President, the federal government, the sub-nationals and organised private sector for going through this painstaking effort, but also ensuring that at the end of the day Nigeria is the winner for it all.”

Minister of State for Labour and Employment, Onyejeocha, said, henceforth, wage review negotiation would no longer be held in five years but three.

She stated that Tinubu also directed both the finance and the budget and economic planning ministers to come up with a template for the payment of the withheld salaries of SSANU and NASU members in public universities.

The minister said, “The president said he will not disappoint and he showed that this afternoon. Recall that labour saw Mr President last week, and they asked that he should give them one week to consult more.

“And, of course, at the end of the day, the consultation came, and became very fruitful because the president said he has to be a father. That it is not the issue of the law of who is right, or who will blink first, that he is our father, like he has always said.

“That we should end the issue of give me 1,000 add 1,000 and all that. That, first and foremost, the review of this minimum wage policy has to be reduced to three years, that five years is too long a time to get any minimum wage review, that’s not very healthy.”

Onyejeocha said the president asked the relevant ministries to “go back to the books, because he has the discretion to look into the issue of SSANU, NASU and all that, so that their money should be paid.

“And they should work out the modalities, whether it’s 50 per cent, or whatever, but that he has given that waiver to be paid, because, of course, there is issue of no work, no pay. And that that issue has to be laid to a rest.”

Ajaero said organised labour accepted the president’s offer of N70,000 with mixed feelings as a result of the prevailing economic circumstances.

He said, “Well, we were here last week and we’re here now. What has been announced in terms of the amount of N70,000 happened to be where we are now. But the good thing about it is that we will not wait for another five years to come on review.

“Rather than settling on a figure that we wait for five years, is like we’ll have to now negotiate even two times within five years, with a view to going up. That is one of the reasons we decided to reach where we are today because of the proviso that ‘you can review in the next three years’.

“The other one, we came with other issues in the basket, like the issue of SSANU, NASU and others, especially with the affront by the Commissioner of Police, FCT, we brought it to Mr. President and talked on the need for that matter to be addressed.

“And, magnanimously, he asked the agencies concerned to work out the modalities for the payment of those workers in the universities.”

Ajaero said the president promised some incentives, like CNG buses, which would lessen the burden that Nigerian workers were passing through, “but you can see that we are taking this with mix feelings because of the situation of the economy”.

The NLC president added, “We have to move ahead, despite the situation, and the negotiation can’t linger, coming from N62,000 to N70,000 and then with the proviso that we are coming back soon to negotiate it. We’re taking it back to our constituency to see how they can get a buy in. So that’s what has transpired this afternoon.”

Speaking during an interview on Arise News last night, Ajaero asserted that a monthly salary of N70,000 would be adequate for Nigerian workers if the federal government took decisive action to reduce the cost of essential goods and services

He stated, “Now we talked about the price of food or incentives needed, if you address this as well as crash the price of a bag of rice to N40,000 or N30,000 and it is in the market, you can crash that of transportation drastically, and then you get the refineries working, N70,000 would be enough for a worker.”

Ajaero, however, expressed scepticism about CNG as a solution, emphasising that addressing accommodation and transportation issues would have a more significant impact.

Osifo, in his own remarks, said, “Yes, just as being said by the three previous speakers, the Minister of Information, minister of state labour, as well as the NLC president, they’ve laid the accounts of what transpired in today’s meeting.

“The president made a pronouncement or announcement of N70,000. That by next week, they should put finishing touches to the bill and do the transmission to the National Assembly.

“But why this became a catch is actually because we from the organised labour, we have been pushing that the issue of five years’ review is, to me, so much, that a lot of economic indices may have changed, because we are in an era where things are moving very fast in terms of both macro and micro economic policies.

“But with the caveat that this is going to be done every three years. The next review will be in three years. And after that pronouncement, we from labour just as has been said, we have received what the president has promised from both ends.”

When the tripartite committee met, the government team and the private sector offered N48, 000, then shifted to N54, 000, N57, 000, N60, 000, and finally N62, 000.

On the other hand, organised labour started with N615,000 demand, then N500,000, to N497,000 and finally N250,000.

Manufacturers Association of Nigeria (MAN), in a statement, commended Tinubu for bringing the long drawn negotiation to an end.

Director General of MAN, Mr. Segun Ajayi-Kadir, urged Tinubu to be mindful of the promises he made to the private sector on how to enable them cope with the latest minimum wage.

Ajayi-Kadir stated, “We commend Mr. President for achieving this breakthrough and look forward to the promised assistance.

“On the side of the private sector, we should hold on to the promise of Mr. President that the federal government will find a way to assist us to pay the minimum wage agreed with labour.

“In this regard, I would assume that reference would be made to the demands made by the OPS (organised private sector) at the concluding stage of the tripartite negotiations.”

Organised Private Sector of Nigeria (OPSN), while commending Tinubu for ending the protracted minimum wage crisis, acknowledged his commitment as well.

OPSN comprises Nigeria Employers’ Consultative Association (NECA); MAN; National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); Nigeria Association of Small and Medium Enterprises (NASME); and Nigerian Association of Small Scale Industrialists (NASSI)

Spokesperson on labour, Mr. Adewale-Smatt Oyerinde, who is also the director general of NECA, stated, “While we commend the president for putting to rest the immediate issue of the national minimum wage, we also note, most importantly, his commitment to support the sub-nationals and the Organised Private Sector (OPS) to pay the new wage.”

While affirming that consultation was still on-going within the OPS, Oyerinde stated, “During the consultations at the National Minimum Wage Committee, the OPS strongly expressed concern about its ability to pay the N62,000 recommended by the tripartite committee.

“In fact, the N62,000 was premised on the understanding and agreement by the government representatives that the government will take definite steps to reduce the current economic burden on the OPS.

“The supports requested included the reversal of increase in electricity tariffs, CBN redemptions of all outstanding forwards for companies in the productive sector, a freeze on introduction of new taxes and levies on businesses for the next five years, duty exemption on imported conversion kits, and government subsidy on procurement of same.”

Similarly, National Association of Nigerian Students (NANS) applauded Tinubu’s approval of N70,000 as minimum wage.

A press statement by President of NANS, Okunomo Henry, in Kano State, said the bold move demonstrated a clear commitment to revitalising the economy, boosting workers’ morale, and fostering sustainable growth.

Henry said the significance of the decision could not be overstated, adding, “A higher minimum wage will not only enhance the purchasing power of workers but also stimulate economic activity, create jobs, and reduce income inequality.”