President Bola Tinubu on Tuesday set out modalities for a comprehensive review of the existing national minimum wage, which is expected to shore it up above the prevailing N30,000.
Tinubu, represented by the Vice President, Kashim Shettima inaugurated the committee, drawn from representatives of the Federal Government, state governments, labour and the organised private sector, at the Council Chambers of the Presidential Villa, Abuja.
He urged them to employ collective bargaining agreement in their consultations to come up with a workable wage for workers.
Tinubu said his aim for constituting the committee was to reinforce earnest desire to foster a motivated workforce, while reaffirming his promise to improve the welfare of Nigerian workers and, by extension, the entire nation.
Recall that following the outcry that greeted the removal of fuel subsidy on May 29, 2023, when the new government took over the helm of affairs, Nigerians, especially the working population had insisted on a wage increase to cushion the impact of the policy.
While the impact became unbearable, workers under the auspices of the Nigeria Labour Congress, NLC, and Trade Union Congress, TUC, had embarked on strike to press home their demands, to which the Federal Government responded by awarding a N35,000 increase for six months preceding the review of the wage policy.
But inaugurating the committee, Tinubu congratulated the nominees for making the list of the Tripartite National Minimum Wage Committee, stressing that they have been carefully selected for the crucial task of renegotiating a new National Minimum Wage for workers in Nigeria.
His words, “Our sense of duty today thrives on both our sensitivity to the conditions of the Nigerian worker and the impending expiration of the last Minimum Wage Instrument in a few months. It is in recognition of the need to ensure a fair and decent living wage, and in compliance with the Act, that the Federal Government has set in motion necessary mechanisms to assemble this tripartite Committee to chart a future that aligns with our collective interests.
“While the decisions we have taken to save the economy are inevitable, we are not unaware of the short-term consequences. We believe that government is a continuum, and, as such, we have intervened in the systemic delays that undermined our economic growth.
“Since the removal of the subsidy, various committees have been established to examine and make recommendations to the government on measures to cushion the envisaged painful effects of the increase on workers and the Nigerian populace at large. I am pleased to share that action has since commenced on the implementation of the outcome of those agreements and initiatives.
“This gathering stems from the deliberations of one of the Technical Committees, which included representatives from both Government and Organized Labour. We have identified the need for the review of the National Minimum Wage and to consider a minimum wage level that can alleviate the nation. It gladdens my heart that the recommendation is being acted upon today, and we can all acknowledge that this is in line with our democratic process and adherence to the rule of law. I express my gratitude to all those who contributed to that endeavour.
“Given the comprehensive membership scope of this new National Minimum Wage Committee, it includes all stakeholders. Recognizing the significance of this initiative and to ensure a substantial engagement, I hereby direct that Ministers and the Head of the Civil Service of the Federation should personally attend the meeting.
“In their unavoidable absence, their Permanent Secretaries should represent them. Similarly, Governors are expected to attend in person or be represented by their Commissioners where necessary. I urge you to consider the issue of a National Minimum Wage and all related matters with thoroughness and concern, keeping in mind not only the welfare of our workforce but also the impact on the country’s economy.”
The President explained that the issue of a National Minimum Wage for the Federation falls within the Exclusive Legislative List of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
He told the committee that the objective should be to surpass the basic Social Protection Floor for all Nigerian workers, considering the sustainable payment capacity of each tier of government and other employers or businesses.
“I express this viewpoint because the minimum wage represents the least amount of compensation an employee should receive for their labor, and as such, it should be rooted in social justice and equity. I hope that the results of your deliberations will be consensual and acceptable to all parties involved.
“The government’s decision, following the consideration of your final recommendation, will be presented as an Executive Bill to the National Assembly. This bill, enriched by the contributions of state governments and private sector employers, will undergo thorough legislative scrutiny before being passed into law.
“I am hopeful that the Committee will employ the principles of full consultation with Social Partners and their direct participation, considering the core provisions of the International Labour Organization Minimum Wage Fixing Convention No. 131 and Minimum Wage Fixing Machinery Convention No. 26, both of which have been ratified by Nigeria.
“In accordance with this, the conditions of genuine Social Dialogue should prevail in the spirit of Tripartism and Collective Bargaining Agreements. I, therefore, encourage all of you to engage in collective bargaining in good faith, recognize each other, and maintain a spirit of give and take. Additionally, please continue your consultations outside the Committee as you work towards recommending a new National Minimum Wage.
“The Committee is anticipated to conclude its deliberations promptly and submit its report and recommendations. This timely submission is crucial to initiate the necessary processes for implementing a new National Minimum Wage. The Hon. Minister of Finance and Coordinating Minister of the Economy has been instructed to allocate the essential funds and logistics to the Committee, facilitating the timely completion of its assigned task.
“I hereby inaugurate the Tripartite Committee on National Minimum Wage and extend my best wishes for fruitful deliberations,” Tinubu noted.
Meanwhile, the Secretary to the Government of the Federation, George Akume, reminded the committee members that they carry the hopes and aspirations of millions of Nigerian workers, noting that it will be instrumental in shaping the economic landscape of our nation.
He said the past year in the life of Nigeria has been marked by significant economic challenges following the removal of fuel subsidy, which he described as a necessary step towards long-term fiscal sustainability.
