Minimum Wage: NLC Pushes for Sanctions Against Non-Compliant Govs

The Nigeria Labour Congress signaled its intent to advocate for penalties against governors and local government officials who fail to adhere to the new minimum wage.

Hakeem Ambali, the National Treasurer of the NLC, revealed this development in Abuja, emphasizing that the absence of punitive measures in the 2019 Minimum Wage Act has led to some state governors refusing to implement the current minimum wage.

Ambali highlighted that a committee comprising representatives from federal and state governments, the private sector, and organized labor will convene this week to review reports from regional sub-committees and recommend a new national minimum wage.

He stressed the necessity of updating the minimum wage in light of Nigeria’s evolving economic landscape, citing increased hardships following the cessation of fuel subsidy payments.

The proposed bill includes provisions for sanctions and enhanced allocations to local governments to ensure compliance with the approved wage rate, aiming to leave no room for excuses.

Simultaneously, the 37-member Tripartite Committee on Minimum Wage, established by the Federal Government, is set to meet to deliberate on stakeholder proposals regarding the new minimum wage.

An executive bill will subsequently be forwarded to the National Assembly for the necessary amendments to the existing Minimum Wage Act.

The forthcoming minimum wage adjustment is anticipated to alleviate the impact of subsidy removal on Premium Motor Spirit.

During public consultations, different regions proposed varying minimum wage amounts, with subsequent harmonization resulting in a consensus of ₦615,000 agreed upon by the labor union and the Trade Union Congress (TUC).