Fed Govt, Labour, OPS okay N70,000 as minimum wage

• Bill set for transmission to National Assembly
• Workers get 36 high-capacity CNG buses

After almost six months of negotiations, the Federal Government, Labour and the Organised Private Sector (OPS) yesterday settled for N70,000 as the new national minimum wage.

The new pay, which will go into effect after passage by the National Assembly and assent by the President, will replace the subsisting N30,000 minimum wage, which came into effect in 2019.

President Bola Ahmed Tinubu said he signed off on the figure because no one in a federal establishment should earn anything less.

He spoke during a meeting with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) leaders at the State House, Abuja.

President Tinubu said he intervened in the negotiations knowing the economic challenges faced by Nigerians, and the need to provide urgent succour.

The Federal Government inaugurated a tripartite committee on January 30 to work out a new minimum wage.

The committee comprised representatives of the federal government/states, Labour and the private sector.

Following the conclusion of negotiations, the committee submitted its report on June 10.

Employers had offered varying amounts, such as N48,000, N54,000, N57,000, N60,000 and N62,000.

Labour started with an initial N615,000 wage demand, then lowered it to N500,000, N497,000 and N250,000.

President Tinubu, in his June 12 broadcast, promised workers a living wage.

The final report of the tripartite committee recommended N62,000 as agreed upon by the government and the OPS. But Labour stuck to N250,000.

The President opted for more consultation before approving an amount.

Yesterday, the President assured Labour that the N70,000 would not be static: it will be reviewed after three years, instead of five.

The President said he had to “edge a little bit forward” from the recommendations of the tripartite committee to arrive at the figure.

According to him, the decision was made to ensure workers are fairly compensated for their services.

President Tinubu said: “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 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.

“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 it.

“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.”

Minister of Information and National Orientation, Mohammed Idris, described the conclusion of the meeting as “a happy day for Nigeria”.

He said: “Today (yesterday) is a happy day for Nigeria.

We’re happy to announce that both the Federal Government and organised Labour have agreed on an increase.

“The new national minimum wage that we expect Mr President to submit to the National Assembly for legislation is N70,000. But that is not all.

“There is also a boost. Mr. President has assured that massive investment is going to be made in infrastructure.

“There is also a deepening of investment in renewable energy. More money is going to go into the acquisition of more 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.”

Minister of State for Labour and Employment, Nkeiruka Onyejeocha, said the President adopted a fatherly approach.

She was happy that the minimum wage will be reviewed triennially rather than the current five-year cycle.

Bayo Onanuga, Special Adviser on Information and Strategy to President Tinubu, in a tweet via his verified X handle @aonanuga1956, said the President gave 36 CNG buses to Labour unions.

“As a way of ameliorating the high cost of living by workers, President Tinubu has promised to give 36 CNG-powered buses with a sitting capacity of 100 each to the TUC and NLC.

“This was one of the highlights of the meeting between the Federal Government and the two central trade unions in Abuja today (yesterday),” he stated.

NLC President, Joe Ajaero, said Labour agreed on N70,000 because of President Tinubu’s willingness to review wages every three years rather than five.

He expressed mixed feelings about the agreement but noted that the NLC would take the proposal back to members for ratification.

Ajaero told reporters: “They have announced N70,000. The good thing about it is that we will not wait for another five years for a review.

“That is one of the reasons why we decided to reach where we are, because of the proviso that we can review in the next three years.

“Although he (the President) promised some incentives like the CNG, which will lessen the burden that the Nigerian workers are passing through, you can see that we are taking this with mixed feelings because of the situation of the economy.

“We will have to move ahead despite the situation, coming from N62,000 to N70,000 and then with the promise that we’ll come back soon to negotiate it.

“We’re taking it back to our constituency to see how we can get a buy-in.”

TUC President, Festus Osifo, expressed satisfaction with President Tinubu’s intervention, especially with the proviso for a triennial review.

He called for swift passage of the new Minimum Wage Bill.

Speaker Abbas Tajudeen promised that the House of Representatives would expedite passage once it receives it from the Executive.

In a statement by his Special Adviser on Media and Publicity, Musa Abdullahi Krishi, the Speaker hailed the N70,000 agreement.

He said: “President Tinubu has demonstrated good leadership by acceding to a national minimum wage of 70,000.

“His proactive approach in addressing the pressing issues within the labour sector is commendable.”

Tajudeen said the House “stands ready to support this landmark decision” and is “fully prepared to give expedited consideration and passage to the new minimum wage bill once the President transmits it.”

“Should it necessitate a special sitting, the House will ensure that the legislative process is swift and efficient, reflecting its dedication to improving the lives of Nigerian workers and bringing succour to them,” the Speaker added.

The Confederation of All Progressives Congress (APC) Support Group (CASG) hailed the development.

Its Director General (DG), Kailani Muhammed, said: “Labour unions and Nigerians should manage the new wage, which in the nearest future will be reviewed.

“The APC support groups will continue to sensitise Nigeria on the need to cooperate with the government on this and accept reality.”