Home News Minimum Wage: Let Each State Negotiate What It Can Pay — Government

Minimum Wage: Let Each State Negotiate What It Can Pay — Government

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Governors from Southern Nigeria, under the aegis of the Southern Governors’ Forum, have called for the consideration of each state’s ability to pay the new minimum wage.

This call came as the Nigerian Governors’ Forum (NGF) announced its continued engagement with stakeholders to find a mutually agreeable solution to the ongoing minimum wage crisis.

President Bola Tinubu’s unusual attendance at the National Economic Council (NEC) meeting, usually chaired by Vice President Kashim Shettima, did not result in any comments on the new minimum wage, nor did the vice president address the issue.

Meanwhile, Organized Labour raised alarms about increasing restiveness among workers in both the public and private sectors over the delay in concluding the new minimum wage discussions. Labour leaders are being pressured to declare industrial action to expedite the process.

Governors’ Stand on Minimum Wage

In a 16-point communique issued yesterday, the Southern Governors’ Forum advocated for each state to negotiate the new wage with labour unions.

The communique read, “The Forum discussed the minimum wage issues demanded by labour and unanimously agreed that the minimum wage should be reflective of the cost of living and that each state should be allowed to negotiate its minimum wage.

This led to the forum’s discussion on fiscal federalism and devolution of powers.”

Following a meeting of the NGF in Abuja, which included governors from Oyo, Zamfara, Anambra, Delta, Gombe, Kano, Imo, Kwara, Ondo, Kaduna, Kebbi, Ebonyi, Sokoto, Ogun, and deputy governors from Akwa Ibom, Osun, and Borno, the governors promised to remain dedicated to the negotiation process and assured that better wages would result.

NGF chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, signed the communique at the end of the meeting, stating, “The Forum discussed the new national minimum wage.

The governors agreed to continue engaging with key stakeholders to reach a mutually agreeable solution.

We remain dedicated to the process and assure that better wages will result from the ongoing negotiations.”

Background and Current Situation

President Bola Tinubu had set up a tripartite committee in January to negotiate a new minimum wage, involving organized labour, representatives of federal and state governments, and the Organized Private Sector (OPS).

However, the committee failed to reach an agreement, prompting labour to declare an indefinite strike on June 3, 2024, which led to the shutdown of key services nationwide.

Labour unions argued that the current minimum wage of N30,000 could no longer sustain an average Nigerian worker, given the current inflationary pressures and the effects of fuel subsidy removal and forex window unification.

They demanded a more realistic wage to align with the economic realities.

Despite a brief relaxation of the strike on June 4, 2024, following President Tinubu’s assurance of a living wage above N60,000, subsequent negotiations failed to yield a consensus.

Labour reduced its demand from N494,000 to N250,000, while the government increased its offer from N60,000 to N62,000.

President Tinubu assured during his Democracy Day speech on June 12, 2024, that an executive bill on the new minimum wage would soon be sent to the National Assembly. However, workers’ frustrations are growing due to the delay, with public and private sector employees urging labour leaders to take decisive action.

Workers’ Restiveness

Sources indicate that workers are becoming increasingly restive, complaining about the unfulfilled promises of palliatives to cushion the effects of fuel subsidy removal.

A labour leader in the public sector union said, “The public sector workers have been lamenting the hardship and suffering they have been passing through.

The minimum wage has been protracted and prolonged, and the suffering brought about by government policies has worsened their conditions.”

Similarly, private sector workers are experiencing compounded challenges due to the foreign exchange crisis and recent electricity tariff hikes.

A private sector labour leader noted, “They keep asking when we are resuming the suspended strike for the government to know that we are suffering.”

Calls for Patience and Swift Action

Prince Adewale Adeyanju, a member of the Tripartite Committee on the New Minimum Wage and President-General of the Maritime Workers Union of Nigeria (MWUN), urged workers to exercise patience, noting that the process involves awaiting the President’s final decision.

Meanwhile, the Senior Staff Association of Nigerian Universities (SSANU) expressed dissatisfaction with the delay. SSANU President, Comrade Mohammed Ibrahim, criticized President Tinubu for not concluding necessary consultations earlier.

“The least we expected is this unnecessary delay. Mr. President can summon or invite the leadership of labour and discuss with them. Consultation shouldn’t be at this level.”

Ibrahim emphasized the need for swift action, stating, “If you are expecting the best from the workers, you should be able to take care of their welfare and well-being. We ask Mr. President to fast-track this consultation and make it snappy.”

The nation now awaits further developments as the government and labour unions continue their negotiations, with workers’ patience wearing thin and the demand for a sustainable and realistic minimum wage growing louder.