Emmanuel OchayiOrganised labour in Nigeria, represented by the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), has put forward N615,000 as the proposed new minimum wage for workers across the country.
This demand comes amidst ongoing discussions and consultations between labour representatives and government officials.
A reliable source within the labour movement, speaking on condition of anonymity, revealed that the proposed figure was agreed upon after thorough consultations among NLC and TUC members. The source hinted that this figure might see further adjustments, especially considering recent increases in electricity tariffs.
“We have given our figures to the government, and it is N615,000. That is the position of the NLC and TUC on the matter,” stated the source. “The government has been informed as well.”
This development follows the setting up of a 37-member panel, chaired by former Head of the Civil Service of the Federation, Bukar Aji, tasked with recommending a new national minimum wage.
The panel, comprising representatives from federal and state governments, the private sector, and organised labour, was urged to expedite its deliberations as the current N30,000 minimum wage expired in March 2024.
Labour leaders have emphasized the necessity of a wage increase to mitigate the impact of rising inflation and ensure decent living standards for workers. Joe Ajaero, president of the NLC, had initially proposed an N1 million minimum wage, citing the worsening economic conditions faced by many workers.
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However, economists have offered varied perspectives on the feasibility and implications of such a significant wage hike. Sheriffdeen Tella, a professor of Economics at Olabisi Onabanjo University, stressed the importance of setting a minimum wage above the poverty threshold, highlighting the need for compliance from both the public and private sectors.
Adeola Adenikinju, a professor of Microeconomics at the University of Ibadan and President of the Nigerian Economic Society, emphasized the involvement of state governments and the private sector in wage negotiations. He suggested that a uniform minimum wage might not be practical due to differing economic capacities across states.
Paul Alaje, another economist, predicted potential challenges for many states in meeting the proposed N615,000 minimum wage. He suggested that President Bola Tinubu might consider lower wage thresholds, particularly if the exchange rate of the naira improves.
Alaje also pointed out the importance of financial assistance and intervention funds from the Federal Government and international communities to support states in meeting wage obligations.
As negotiations continue between labour representatives and government officials, the fate of millions of Nigerian workers hangs in the balance, with hopes pinned on achieving a fair and sustainable minimum wage that reflects the economic realities of the country.
