High Expectations as FG, Labour Meet Today Over Minimum Wage

Negotiations for a new national minimum wage resume today at the 7th meeting of the 37-member tripartite committee in Abuja.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) rejected the federal government’s fresh offer of N60,000 last week, heightening tension over a potential industrial action as the May 31 deadline given by the organized labour expires today.

This rejection led to another walkout by the organized labour from the committee meeting. The walkout, the second in two weeks, signals danger for the new minimum wage negotiations as labour had earlier given the federal government until the end of May 2024 to propose an acceptable wage.

Last week, the government raised its offer from N54,000 to N57,000, which was also rejected by the organized labour. On Tuesday, labour reduced its demand from N497,000 to N495,000, a figure the government and private sector members believe is unrealistic.

Adewale-Smart Oyerinde, the Director General of the Nigeria Employers Consultative Association (NECA), speaking for the organized private sector, appealed to the NLC to accept N60,000, emphasizing sustainability for businesses to survive.

The government has expressed concerns that a higher minimum wage could lead to job losses among the 58 million Nigerians currently employed by the private sector. While the government and organized private sector believe a 100% increase from the previous N30,000 to N60,000 is sufficient, Festus Osifo, speaking for the organized labour, disagreed. He cited the fuel subsidy removal and high inflation, leading to over 300% devaluation of the naira, as reasons for the NLC’s demand for a N495,000 minimum wage.

Labour has urged the government to be more responsive to the demands of Nigerian workers, arguing that the government’s proposals do not reflect current economic realities. They claim the federal government has not shown enough commitment to resolving the minimum wage issue.

“How can the government claim to have the interest of Nigeria’s workers at heart while offering N60,000 under current economic conditions?” a labour representative questioned, highlighting the high cost of living that makes such an offer insufficient.

On the May 31 deadline, a labour official, who wished to remain anonymous, stated that labour has not changed its plan. “If the government fails to reach an agreement on the new minimum wage by May 31, we will meet and decide our next line of action,” he said.

The NLC criticized the federal government for not including the cost of living adjustments (COLA) in the proposed minimum wage, as is common in other countries, including Ghana.

Both the federal government and the organized private sector are aligned on the minimum wage issue, with the private sector having earlier proposed N57,000, which the government also adopted.

Sources close to the tripartite committee meeting revealed that the government has appealed to labour to reduce their demands for an affordable minimum wage for all stakeholders.