By Nathaniel Zacchaeus, Abuja
President of the Senate, Godswill Akpabio, has said state governments have enough resources to pay the new minimum wage.
He insisted that all the parties to the negotiation should abide by the agreement.
He stated this yesterday in Abuja at a one-day retreat on Labour Reforms and Living Wage in Nigeria: Legislative Intervention organised by the National Institute of Legislative and Democratic Studies (NILDS).
The retreat, according to the Director-General of NILDS, Prof Abubakar Sulaiman, was organised for the chairmen and members of the National Assembly committees on employment, labour, and productivity.
The DG also said stakeholders were drawn from the Nigeria Labour Congress (NLC); the Trade Union Congress (TUC); the Nigerian Employers’ Consultative Association (NECA), and the International Labour Organisation (ILO) were part of the event.
Akpabio on the occasion said the state governors no longer have any excuse to complain about the payment of the new minimum wage going by the improvements in the revenues which accrued to them every month.
He said, “In the recent past, even some segments of the public sector, especially at the state level, failed to implement the national minimum wage.
“They either failed to domesticate the legislation or failed to honour it after domestication through the payment of percentage salaries for various reasons.
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“Now that it is on record that all states have access to more monthly allocations as a result of the removal of fuel subsidy, it is expected that all states will abide by the new minimum wage when finally determined and legislated.”
Akpabio was represented by the Chairman of the Senate Committee on Labour, Employment and Productivity, Senator Diket Plang.
He said the significance of the retreat had further underscored the possible legislative interventions in redressing the intractable and seemingly endless conversations around labour issues in the country.
He said, “The significance of the minimum wage debate is pertinent in several ways, these include; shielding workers from unreasonably low compensation, preventing employers from exploiting their workers, and providing workers with adequate income for food, shelter, clothing, healthcare, transportation and other essential needs, amongst many other benefits.
“There are always two sides of a coin. In other words, despite its advantages, a minimum wage also has its disadvantages.
“Some of the main concerns raised by opponents of a minimum wage include; job losses, particularly for low-skilled workers, because employers often respond to payment of higher wages by reducing their workforce.
“It has also been argued that increased minimum wage can lead to inflation, as businesses may pass on the higher labour costs to consumers in the form of higher prices for goods and services. It can also contribute to rising living costs amongst many other concerns.
“It is important to note that both the proponents and antagonists of the minimum wage have their points, which seem generally valid and compelling.
“However, adding contexts to it is pertinent for obvious reasons. One, from a comparative perspective, there is no one-size-fits-all approach to the question of minimum wage. There are notable variations across countries.
“While some have a unified minimum wage system determined only by the central government, there are a few countries with multiple minimum wage systems, where subnational governments can also legislate.”
Akpabio observed that only eight per cent of the nation’s population would be affected by the minimum wage payment and the private sector workers would be worst hit when implemented.
He said, “Nigeria’s labour market has two segments, namely the public and private sectors. However, the public sector workers are the most affected by increases in the minimum wage for two main reasons.
“First, it is not proper for the government to violate its law. Second, nearly all public-sector workers are unionised. Violations can therefore be resisted and counterproductive.
“Two, the majority of Nigerians are not directly affected by changes in the minimum wage mainly because 92.3 per cent of the working-age employed population work in the informal sector, mostly as farmers, traders, artisans, or providers of services.
“Conversely, only about 8% of Nigerians would benefit from a minimum wage increase, all other things being equal. Unfortunately, “all other things” have not always been equal.
“Some components of this eight per cent who work in the private sectors, especially in services, hospitality, small private clinics, and non-profit organisations earn below the minimum wage.
“This is partly because many of them are not sufficiently organized and unionized. As such, they lack a veritable platform for effective organisation and resistance.
“For instance, how will the new minimum wage, even if eventually resolved, affect the majority of Nigerians not directed covered by it? How will the informal sector respond to it? In what ways could it impact employment, income, and inequality across the board and beyond the labour force? These are relevant posers that we cannot completely ignore.
“My reference to the above challenges is not to denigrate the ongoing demand by labour for a new minimum wage, but to serve as a reminder of the complexity of the issues in Nigeria.”
*Abass pledges NASS will pass wage bill expeditiously
The Speaker of the House of Representatives, Tajudeen Abass, noted that labour represents a critical component and stakeholder in Nigeria’s national development architecture that deserves the best treatment in the true sense of the term.
He was represented by the Chairman of the House of Representatives Committee on Labour and Productivity, Adegboyega Adefarati.
Abass identified poor remunerations as one of the main causes of corruption in the country.
“Poorly paid workers are highly susceptible to corrupt inducements and pressures,” he said.
He said the 10th National Assembly is firmly resolved to see to the expeditious resolution of the new minimum wage matter as soon as possible.
Abass said, “We will do our best to give it (minimum wage bill), expeditious hearing and passage whenever we receive the proposal from the executive.”
*Labour Minister assures workers of excellent condition of service
The Minister of State for Labour and Employment, Nkeiruka Onyejeocha, has described the report of a tripartite committee on the new minimum wage as a comprehensive blueprint to improve the conditions of service of all Nigerian workers both in the public and private sectors.
Onyejeocha, in her speech on the occasion, said the retreat underscored “our collective commitment to the welfare of every Nigerian worker, a commitment that is both a moral imperative and a strategic priority for our nation’s growth and development.”
She noted that the vision of the current administration in the country was to create a labour market that is fair, equitable, and capable of sustaining the aspirations of every Nigerian worker.
Onyejeocha said, “Central to our efforts is the work of the Tripartite Committee comprising of Government, Organised Private Sector and Organised Labour, which has diligently engaged with stakeholders on the critical issue of a new national minimum wage.
“The Committee’s comprehensive submissions to Mr. President, reflect a balanced and realistic approach to addressing the myriad challenges faced by our workforce.
“These submissions are not just recommendations; they are a blueprint for actionable reforms that will drive sustainable improvements in labour conditions across the country.”
She explained that one of the key initiatives of the Federal Ministry of Labour and Employment was the Labour and Employment Empowerment Programme (LEEP).
LEEP, according to her, “Embodies our holistic approach to labour reform, with specific pillar dedicated to labour reforms and labour compliance enhancement.”
She said, “This initiative aims to ensure that employers adhere strictly to the highest standards of occupational health and safety.
“By fostering a culture of compliance, we are not only protecting workers but also promoting a business environment that is conducive to productivity and growth. As we embark on these reforms, we are particularly focused on factories and industrial parks.
“These areas are critical to our industrial strategy and the well-being of thousands of workers. We plan to rigorously enforce safety standards and ensure that employers provide safe and healthy working conditions.
“This is not just about compliance; it is about creating workplaces where workers can thrive without fear of injury or exploitation.”
She noted that the legislative oversight of the National Assembly Committees on Employment, Labour, and Productivity would support her ministry’s vision for a just and equitable labour market.
“Let us indeed create laws and policies that not only foster productivity and growth amongst our workforce but also commeasurably punish offenders and violators of labour laws. This is the only pathway to true reform,” she stated.
