Labour Rejects FG’s ₦54,000 New Minimum Wage Offer

Negotiations on a new minimum wage have been adjourned till Wednesday after the organised labour rejected the Federal Government’s revised proposal of ₦54,000. A reliable source present at the meeting informed our correspondent of the development.

The Federal Government had increased its offer from an initial ₦48,000 to ₦54,000 following a walkout by labour representatives last week in protest of the original proposal.

During last week’s meeting, the Organised Private Sector (OPS) also proposed ₦54,000, while labour maintained its demand for a ₦615,000 living wage.

A source from the Tuesday meeting confirmed, “The government increased its offer to ₦54,000, but labour rejected it. The meeting has been adjourned till Wednesday.”

Labour leaders expressed frustration over the government’s approach, with a representative noting, “No seriousness at all. State governors didn’t attend, and those present from states like Bauchi and Niger had no mandate to negotiate.”

The private sector’s response was not addressed before the adjournment, but there is hope they will increase their initial offer.

Labour has set a deadline of May 31, 2024, for implementing the new minimum wage. Nigeria Labour Congress (NLC) President Joe Ajaero reiterated the ₦615,000 demand, citing the current economic situation and the needs of an average Nigerian family.

Ajaero criticized the government and OPS for the stalled negotiations, stating, “Despite earnest efforts, the government’s and OPS’s actions led to a breakdown in talks.”

In a joint statement by the NLC and Trade Union Congress (TUC), leaders Joe Ajaero and Festus Osifo acknowledged ongoing negotiations but stressed the need for a fair and urgent resolution that reflects the contributions of Nigerian workers and addresses their survival challenges.

President Bola Tinubu, via Vice President Kashim Shettima, inaugurated a 37-member Tripartite Committee on Minimum Wage on January 30, 2024. The committee, which includes representatives from federal and state governments, the private sector, and organised labour, is tasked with recommending a new national minimum wage before the current ₦30,000 wage expires on April 18.

At the committee’s inauguration, Shettima urged prompt resolution and early report submission, emphasizing its importance for timely implementation.

To advance the committee’s work, zonal public hearings were held on March 7 in Lagos, Kano, Enugu, Akwa Ibom, Adamawa, and Abuja. Proposals varied, with NLC members in the South-West demanding ₦794,000, while the TUC suggested ₦447,000, reflecting the economic challenges and high living costs.