The Federal Government of Nigeria has said that although the Tripartite Committee On National Minimum Wage has yet to finish its negotiations, workers will not lose anything as the new minimum wage will take effect as from May 1, 2024.
The Minister of State Labour, Nkeiruka Onyejeocha, had made this disclosure on Wednesday while addressing Nigerian workers at the May Day celebration in the FCT, Abuja.
The Minister had remarked that it was regrettable that the new national minimum wage had not been made ready before today, but she said that a wide consultation is ongoing to ensure that the document would be released altogether, as soon as possible.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have at countless times called on the administration of President Bola Tinubu to speed up the upward review of wage awards.
Lately, the Organised Labour demanded for N615,000 to be the new minimum wage for workers so they can be able to cope with the economic realities and high inflation in Nigeria.
The labour unions revealed that the current minimum wage of N30,000 could no longer cater to the wellbeing of an average Nigerian worker, and that not all governors were paying the current wage award, which expired in April, five years after the Minimum Wage Act of 2019 was signed by former President Muhammadu Buhari.
The Minimum Wage Act is supposed to be reviewed every five years to meet the contemporary economic demands of Nigerian workers.
Why It Matters:
Implementing the new minimum wage should not only be because of the critical economic situation in the country presently, but also because increasing the minimum wage acknowledges the value of work and ensures that individuals can earn a decent living wage, which in turn promotes worker productivity.
- Economic Realities: The rising costs of living in Nigeria have completely eroded the purchasing power of the N30,000 minimum wage, leaving workers struggling to make ends meet daily. Some workers even go into debt every month in an attempt to keep their heads above water in these times.
From food to housing and healthcare, the basic needs of life have become increasingly unattainable for many, driving the urgent need for a wage review to ensure workers’ financial security.
- Legal Obligation: From the legal point of view, the Minimum Wage Act of 2019 mandates for a review of the minimum wage every five years, to be up to speed with economic developments as well as safeguard the welfare of workers. As the five-year period terminates, it becomes necessary for the government to fulfill its legal obligation and conduct a thorough review to address the increasing imbalance between worker’s wages and living costs.
- Adherence Issues: The report that not all governors are adhering to the current minimum wage requirements drives home the urgency of implementing a revised wage structure that is enforceable and can be widely applied nationwide.
The Bottom Line:
Reviewing and Implementing the minimum wage is necessary for promoting economic stability in Nigeria. It also reflects a commitment, on the part of the Federal Government, to the nation’s workers and contributes to a more equitable and prosperous society.
