Tinubu May Announce New Minimum Wage On Workers’ Day

Chukwudi Akasike, Adebayo Folorunsho-Francis Deborah Tolu-Kolawole and Stephen Angbulu

• Committee’s target is for President to make announcement on May 1, says member
• Labour spoils for war with govs, insists states have money from subsidy removal

Indications have emerged that President Bola Tinubu may announce the new minimum wage on May 1 in commemoration of the International Labour Day and backdate its implementation to April.

Saturday PUNCH gathered that the National Minimum Wage Committee was working to ensure that all negotiations regarding the new rate were finalised before then with the expectation that the President would announce the new minimum wage in his Workers’ Day address.

A member of the committee, who spoke to Saturday PUNCH on condition of anonymity because of the sensitive nature of the issue, said, “By next week, the minimum wage committee will meet again. It’s a continuous meeting. That is a meeting where all the reports from the zonal public hearings will be collated and reported, and then, you know, that will also give the committee the direction to work with.

“Our target is to ensure that Mr President announces the minimum wage by the 1st of May, which is the Workers’ Day, for it to take effect from April. So, we are working to meet the timeline.”

When reminded that the current minimum wage of N30,000 would cease to be valid on March 31, the committee member said it was unlikely that the new rate would be ready before then, adding that there was still a long way to go in arriving at an acceptable minimum wage for the country.

The source stated, “We have not got to the negotiation point yet. When you finish with the zones, it is the aggregate of what you collect from the zones that will determine the direction of the main committee. Now that we have finished with the zones, when the committee meets, it will collate all the positions of the zones and committee members.

“The positions of the NLC, TUC, NECA (the Nigeria Employers Consultative Association) and the government will be looked at. Then, we will look at the aggregate, find a percentage, and arrive at what will be agreeable.

“We are going to make some adjustments. I am sure the committee will also have a private meeting with Mr President; they will look at the ability to pay, and then with the state governors. NECA will also be involved and we will see how we marry those angles. It is not a one-stop affair.”

When contacted, the Minister of Information and National Orientation, Idris Mohammed, did not take his calls and he had yet to respond to text and WhatsApp messages sent to his mobile line as of the time of filing this report.

The Special Adviser to the President on Information and Strategy, Bayo Onanuga, said he was not so conversant with the internal deliberations of the committee, but affirmed that talks were ongoing among the committee members who, he noted, were cognizant of the urgency of their assignment.

However, a presidential aide, who spoke on condition of anonymity because he was not the official spokesperson for the President, said Tinubu might not wait for May 1 to announce the new minimum wage if the committee was able to complete its assignment as scheduled, noting that ordinarily, the new wage should come into effect on April 1.

The aide said, “I don’t think the government will be able to wait until May 1 before announcing the minimum wage. The law says it should be concluded by early April.

“If the parties agree, why do they have to wait to make the announcement? Because they are negotiating and the law says negotiations should be completed by April.”

Labour warns govs 

The Organised Labour has warned state governors that it will not accept anything less than full implementation whenever the new minimum wage becomes law as it is ready to go into battle with such governors.

Labour’s position is coming at a time when the governors are asking the National Minimum Wage Committee to consider each state’s peculiarities in arriving at an acceptable figure, even as the panel is compiling the reports of its public hearing in the different zones.

The two labour centres in the country – the Nigeria Labour Congress and the Trade Union Congress – are unanimous in rejecting the governors’ position, warning that it is a recipe for prolonged industrial unrest.

The Nigeria Governors’ Forum had urged the National Minimum Wage Committee to take into account the present circumstances, unique characteristics of individual states, and the effects on both the government and private sector employers’ ability to pay when determining the wage amount.

The NGF, in a communiqué issued after its virtual meeting, and signed by its Chairman and Kwara State Governor, AbdulRahman AbdulRasaq, made available to journalists on Thursday, stated, “Members reviewed the progress of the National Minimum Wage Committee and ongoing multi-stakeholder engagements towards agreeing on a fair minimum wage.

“Members urged the NMWC to consider the current realities, individual states’ peculiarities, and consequential impact on the capacity of the government as well as private sector employers to pay. Members also emphasized the need for proposals to be data-driven and evidence-based.”

Before now, the labour unions had said the existing national minimum wage of N30,000 was no longer realistic, citing the steep inflation rate of 31.7 per cent in February from 29.9 per cent reported by the National Bureau of Statistics in January.