Minimum wage: FG, Labour talks deadlocked, NLC defends N615,000 demand

Due to the incapacity of organised labour and the federal government to come to an agreement on the matter, the current negotiations for a new minimum wage have come to a standstill.

This was indicated by President Bola Tinubu in his remarks on Wednesday at the International Workers' Day commemoration in Abuja.

Additionally, in an interview, Mr. Bayo Onanuga, the President's Special Advisor on Information and Strategy, criticised employees for insisting on the N615,000 minimum salary. He claimed that the minimum wage amount had not been agreed upon by the government and labour organisations.

However, Joe Ajaero, the president of the Nigeria Labour Congress, stood up for the workers' demands, stating that organised labour would not accept any payment that would cause its members to become impoverished.

A tripartite committee of members from the government, labour, and private sectors was established by the President in January with the aim of examining the N30,000 minimum wage that was implemented during the administration of former President Muhammadu Buhari.

The NLC and the Trade Unions Congress, the nation's two main labour organisations, presented the committee with a proposal for a minimum salary of N615,000 last month.

Because it had rejected labor's demand, the administration did not announce the new minimum wage during Wednesday's May Day celebration.

Leading representatives from the Federal Ministry of Labour and Employment stated that negotiations had reached a deadlock because organised labour was demanding a minimum wage of N615,000, while the government and private sector were offering between N60,000 and N70,000. They spoke on the condition of anonymity because they were not authorised to discuss the matter.

But in a Channels Television interview on Wednesday, NLC President Ajaero stated that the suggested N615,000 minimum salary was determined via consideration of the demands of the typical Nigerian family of six as well as the country's current economic climate.

According to him, the previous N30,000 minimum salary ended on April 18.
The Federal Government announced on Tuesday that federal servants will receive a pay increase of between 25 and 35 percent across several consolidated salary schemes. He termed this as foolish.

"As of today, we ought to be operating under a new minimum wage regime," he continued. The discussions were expected to be over.

Through the National Assembly, the Federal Government enacted laws pertaining to it. However, we saw that the Federal Government declined to call the adjourned meeting back, so the conversation ended up going to voice mail.

Since the government isn't promising a pay raise, I believe the statement now comes off as playful. We in the NLC and even at the TUC are concerned about this issue given their recent announcement.

Ajaero went on to say that organised labour had decided to pay civil servants a living wage of N615,000.

livable wage

"A living wage is something that will, at the very least, keep you alive," he said. This income is not going to keep you destitute forever. You won't need to borrow money in order to go to work for this income. This pay isn't going to put you in the hospital every day for starvation. We have attempted to look at N615,000 for that living wage.

"Allow me to explain how we came at that estimate. We have N40,000 worth of housing and accommodations. Naturally, this was before to the current pricing rise when we requested N20,000 worth of electricity. At present, no one is able to spend this amount. Our utility costs roughly N10,000. We examined gas and paraffin, which cost between N25,000 and N35,000.

"We examined meals for a family of six, which comes to almost N9,000 per day. That comes to roughly N270,000 for 30 days. Examine the medical, N50,000 if no surgery or other procedures are required.

"We considered spending N20,000 on clothes. N50,000 will go towards schooling. I'm not sure if parents who attempted to enrol their kids in private schools will be able to handle this amount. We also have N10,000 worth of sanitation.

"I believe that transport is where we have the majority of our money." This is a result of both the workers' continued marginalisation and the N110,000 cost of petrol.

"I want anyone to look into this further and see if there will be any savings when you pay somebody on this rate," the NLC president said, adding that this increased the total living wage to N615,000.

Notwithstanding the impasse in the talks to establish a new minimum wage, Tinubu stated that his administration was prepared to improve living and working circumstances for employees, supported by "a fair living wage."

President Tinubu disclosed to employees at Eagle Square, Abuja, that the Tripartite Committee on Minimum Wage, which was formed on January 30, 2024, was unable to come to an agreement during its most recent meeting with organised labour on Monday, despite its best efforts.

"You would recall that on January 30, 2024, the Federal Government convened a 37-member Tripartite Committee on Minimum Wage," Vice President Kashim Shettima said on behalf of Tinubu. The committee's task was to offer advice and recommend a national minimum wage that takes into account the state of the economy right now.

Since then, the committee has been assiduously attempting to propose a new National Minimum Wage in cooperation with labour leaders.

"Unfortunately, at its most recent meeting, the committee was unable to come to a consensus despite concerted efforts."

But he pledged to break the deadlock so that the announcement of a livable wage would come as soon as possible.

"I promise that this will be resolved quickly and that you no longer need to worry." He said, "In fact, this government is receptive to the committee's recommendation of not only a minimum wage but a living wage.

Tinubu earlier stated in a statement that his administration was still dedicated to enhancing the welfare of all workers through a number of relief initiatives, such as the paycheck award and the imminent minimum wage review.
"President Tinubu is adamant that workers should receive fair compensation and improved welfare, and that those who maintain the country's infrastructure should be compensated fairly as well.

As stated in the statement, "The President pledges to improve not only the welfare of Nigerian workers but also their working conditions and the resources they need to succeed."

With their "fidelity to the peace, progress, and development of the nation evident in their tireless efforts and patriotic zeal to keep the national engine running," Nigerian labourers have earned Tinubu's admiration.

He gave recognition to workers in every field, including the clerical officer who makes sure that correspondence is properly documented and distributed, the security officer who never wavers in his duty during any season, the teacher who safeguards the future of our country by educating the next generation, the doctor who works tirelessly to save countless lives, and all Nigerian workers who keep the torch burning.

Labour is faulty in the presidency

The Presidency explained the reasons behind the standstill in the negotiations, stating that the Federal Government could not afford the N615,000 minimum salary that organised labour was demanding.

Onanuga, the President's Special Advisor on Information and Strategy, stated that the parties need to reach a consensus on a sum that is practical for the government and the private sector.

"It's an open affair," he declared. The public was informed today by NLC President Ajaero that the organisation was requesting a minimum salary of N615,000 per month. So, from where will the funds originate? Are we able to pay with that level of money? There is no minimum salary that the government cannot afford to pay.

Therefore, the President is expecting that perhaps at their next meeting, everyone will reach a reasonable deal that takes into account the amounts that the public and private sectors can afford to pay.

A representative from the Ministry of Labour further stated that the Federal Government has suggested between N60,000 and N70,000.

The insider, who wished to remain unnamed because he lacked authorization to discuss the matter, said, "The government can spend up to N60,000 to N70,000 a month. But anything outside of that, for the government, is impossible.”
The vice president, Shettima, encouraged committee members to "speedily" come to a decision and turn in their reports as soon as possible because the present N30,000 minimum wage expires at the end of March 2024 during the group's January 30 inaugural meeting.

According to Shettima, "this timely submission is crucial to ensure the emergence of a new minimum wage."

In addition, he stressed the importance of contract adherence, promoted outside committee consultations, and called for collective bargaining to be done in good faith.

N30,000 was authorised for federal and state employees in the same year by the Minimum Wage Act of 2019, which was signed by the former president Buhari.

Additionally, every five years, the Act mandates a review of the minimum wage.

On May 29, 2023, Tinubu eliminated the fuel subsidy, which precipitated a dramatic increase in the general cost of living.
To lessen the effects of the elimination