Labour Anticipates President Tinubu’s Stance on ₦62,000 Minimum Wage

The Nigerian Labour Congress (NLC) is currently awaiting President Bola Tinubu’s response regarding the newly proposed minimum wage of ₦62,000, agreed upon by the Federal Government and the Organised Private Sector. NLC President Joe Ajaero emphasized the importance of the President’s decision following the Tripartite Committee meeting in Abuja last Friday.

Initially, the labour unions, including the Trade Union Congress (TUC), rejected the proposal, with TUC President Festus Osifo advocating for a ₦250,000 minimum wage. The NLC criticized state governors for claiming they cannot afford even the previously offered ₦60,000 minimum wage, deeming it detrimental to the poor.

Governor Hope Uzodinma of Imo State confirmed the new ₦62,000 figure after the Tripartite Committee meeting. The next step involves sending the recommendation to President Tinubu, who will then forward an executive bill to the National Assembly for approval.

Ajaero expressed confidence that the President would consult further on the committee’s recommendation before making a final decision. He highlighted past instances where initial recommendations were increased by the President before being sent to the legislature.

Furthermore, the NLC reacted strongly to the Nigeria Governors Forum’s (NGF) statement about their inability to pay ₦60,000, accusing them of bad faith. The union highlighted the significant increase in FAAC allocations, arguing that state governments are financially capable of paying a higher minimum wage if they cut the high cost of governance and minimize corruption.

NLC spokesperson Benson Upah stressed the need for a national minimum wage that protects the most vulnerable, criticizing the governors’ claims of financial incapacity. He pointed out the adverse effects of government policies like fuel subsidy removal and currency devaluation on workers’ real wages, urging the governors to reconsider their stance for the nation’s wellbeing.

However, economic experts have raised concerns about the new minimum wage proposal’s potential negative effects on the economy. Dr. Muda Yusuf, former Director General of the Lagos Chamber of Commerce and Industry, noted that while ₦62,000 is insufficient given the current cost of living, the public sector’s large workforce complicates the issue of wage sustainability.

Other experts, such as National President of the All Farmers Association of Nigeria Kabir Ibrahim and capital management expert Peter Sunday Adebola, stressed the need for government interventions to address high food prices and inflation. Adebola particularly emphasized the importance of reducing food inflation to enhance the real value of wages, cautioning that merely increasing nominal wages without addressing inflation would not improve workers’ living standards.

These experts called for comprehensive economic strategies to ensure that wage increases are accompanied by measures to control inflation and support food security, thereby improving overall economic stability and workers’ livelihoods.