Labor unions in Nigeria, specifically the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), have put forward a proposal for a new minimum wage of N615,000 per month for workers in the country, according to information obtained by Sunday PUNCH.
An anonymous executive within the organized labor sector disclosed that this proposed wage emerged after consultations between the NLC and TUC. The source, who participated in a sub-committee established by the government to address the minimum wage issue, indicated that the figure of N615,000 per month has been communicated to the government.
The initiative for a new minimum wage was catalyzed by a directive from President Bola Tinubu, relayed through Vice President Kashim Shettima, who convened a 37-member panel tasked with recommending a revised national minimum wage. The panel, representing various sectors including federal and state governments, the private sector, and organized labor, was urged to expedite its deliberations as the existing N30,000 minimum wage was set to expire in March 2024.
Chaired by former Head of the Civil Service of the Federation, Bukar Aji, the panel pledged to propose a minimum wage that is fair, feasible, and sustainable.
The composition of the panel includes representatives from both federal and state governments, employer associations such as the Nigeria Employers’ Consultative Association, and labor unions like the NLC and TUC.
While there were earlier reports of a proposed N1 million minimum wage by the NLC, subsequent discussions between NLC and TUC have reportedly settled on the figure of N615,000, although this is still tentative.
Regarding the recent hike in electricity tariffs, organized labor sees it as an opportunity to push for further wage increases, as it believes the tariff hike directly impacts workers' expenses.
However, economists have varying opinions on the matter. Professor Sheriffdeen Tella of Olabisi Onabanjo University stated that fixing the minimum wage above the international poverty threshold would be a more effective strategy. He emphasized the importance of enforcing compliance with agreed-upon minimum wage standards, especially among state governments and private sector entities
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