President Bola Ahmed Tinubu is poised to announce the long-anticipated new national minimum wage for Nigerian workers today, Thursday, July 18. This announcement is expected during a crucial meeting with organized labor at the Presidential Villa in Abuja.
This development follows recent legislative activities aimed at adjusting the national budget to accommodate the new wage. On Wednesday, July 17, Senate Leader Opeyemi Bamidele (APC: Ekiti Central) introduced an amendment to the Appropriation Act, 2024. This amendment proposes an increase in capital expenditure by N3.2 trillion and in recurrent expenditure by N3 trillion. Both expenditures will be drawn from the Consolidated Revenue Fund and are intended to stretch through to December 31, 2024.
The anticipated announcement is a significant step in addressing the economic realities faced by Nigerian workers. The current minimum wage, which has not seen a review in several years, has been a point of contention among workers and labor unions. Rising inflation and the cost of living have made it increasingly difficult for workers to sustain themselves and their families on the existing wage.
During a prior meeting with labor leaders, President Tinubu suggested that the review period for the national minimum wage should be shortened to every two or three years, rather than the current five-year interval. This proposal aims to mitigate the prolonged disputes and economic strain caused by infrequent wage adjustments. By ensuring more regular reviews, the government hopes to better align wages with the economic realities and cost of living.
The proposed amendments to the 2024 budget reflect this commitment. According to Bamidele, these changes are necessary not only to accommodate the new minimum wage but also to support Tinubu’s “Renewed Hope” legacy projects. These projects, which were not included in the initial 2024 budget, are expected to address various socio-economic challenges and drive national development.
However, the proposed decentralization of minimum wage negotiations has sparked controversy. The Nigeria Labour Congress (NLC), one of the nation’s foremost labor unions, has issued a fresh strike notice in response to the plan. The NLC argues that moving minimum wage negotiations from the federal exclusive list to the concurrent list, thereby allowing state governors to negotiate independently, could lead to significant disparities and potentially unfair wages.
NLC President Joe Ajaero has been vocal about the union’s concerns, stating that the move would undermine the principles of equity and fairness embedded in the Nigerian constitution. According to Ajaero, such decentralization could result in what he describes as “slave wages,” particularly in states with weaker economies or less progressive labor policies. The NLC’s stance underscores the importance of maintaining a standardized minimum wage across the country to ensure that all workers receive fair compensation for their labor.
The meeting between President Tinubu and organized labor is expected to address these concerns and outline a clear path forward. The government aims to balance the need for a sustainable and fair minimum wage with the economic realities of various states. This delicate balance is crucial to avoiding the economic disparities feared by labor unions while also fostering an environment conducive to national economic growth and stability.
