By Cross Udo, Abuja
President Bola Tinubu yesterday urged members of the new National Minimum Wage Committee to engage in collective bargaining in good faith.
Tinubu gave the advice when he inaugurated the 37-member Tripartite Committee of the National Minimum Wage at the Council Chamber of the Presidential Villa in Abuja.
The President, who was represented by the Vice President, Senator Kashim Shettima told members of the committee drawn from the government, organised labour, and the private sector to maintain the spirit of give and take.
The President of the Nigeria Labour Congress (NLC), Joe Ajaero, was conspicuously absent as the labour centre was represented by the Deputy President, Prince Adeyanju Adewale.
But in a Channels TV programme tagged Politics Today later yesterday, Ajaero said most state governors on the 37-member tripartite committee on minimum wage were guilty of either not paying existing minimum wage or were paying them in breaches.
However, in his address before the inauguration of the committee, Tinubu urged members to “speedily” arrive at a resolution and submit their reports early as the current N30,000 minimum wage expires at the end of March 2024.
He urged them to take attendance at meetings seriously, adding that the minimum wage must be based on equity and social justice.
He also encouraged them to consult outside the committee and come up with a fair, practical, implementable, and sustainable minimum wage
Tinubu in his address titled: Social Justice and Equity: Tripartite Agenda for Minimum Wage”, said the gathering was a reaffirmation of the promise to improve the welfare of Nigerian workers and, by extension, the entire nation.
He said, “The labour force stands as the cornerstone of the progress of every nation, and ours has been the enduring engine of our pursuit of development.”
On the importance of the gathering, he said, “Our sense of duty today thrives on both our sensitivity to the conditions of the Nigerian worker and the impending expiration of the last Minimum Wage Instrument in a few months.
“It is in recognition of the need to ensure a fair and decent living wage, and in compliance with the Act, that the Federal Government has set in motion necessary mechanisms to assemble this tripartite Committee to chart a future that aligns with our collective interests.
“While the decisions we have taken to save the economy are inevitable, we are not unaware of the short-term consequences. We believe that government is a continuum, and, as such, we have intervened in the systemic delays that undermined our economic growth.
“Since the removal of the subsidy, various committees have been established to examine and make recommendations to the government on measures to cushion the envisaged painful effects of the increase on workers and the Nigerian populace at large. I am pleased to share that action has since commenced on the implementation of the outcome of those agreements and initiatives.”
Continuing, Tinubu said, “We have identified the need for the review of the National Minimum Wage and to consider a minimum wage level that can alleviate the nation.
“It gladdens my heart that the recommendation is being acted upon today, and we can all acknowledge that this is in line with our democratic process and adherence to the rule of law. I express my gratitude to all those who contributed to that endeavour.
“Given the comprehensive membership scope of this new National Minimum Wage Committee, it includes all stakeholders. Recognising the significance of this initiative and to ensure a substantial engagement, I hereby direct that Ministers and the Head of the Civil Service of the Federation should personally attend the meeting. In their unavoidable absence, their Permanent Secretaries should represent them.
“Similarly, governors are expected to attend in person or be represented by their commissioners where necessary. I urge you to consider the issue of a National Minimum Wage and all related matters with thoroughness and concern, keeping in mind not only the welfare of our workforce but also the impact on the country’s economy.
“The issue of a National Minimum Wage for the Federation falls within the Exclusive Legislative List of the 1999 Constitution of the Federal Republic of Nigeria (as amended). Therefore, our objective should be to surpass the basic Social Protection Floor for all Nigerian workers, considering the sustainable payment capacity of each tier of government and other employers or businesses.
“I express this viewpoint because the minimum wage represents the least amount of compensation an employee should receive for their labour, and as such, it should be rooted in social justice and equity. I hope that the results of your deliberations will be consensual and acceptable to all parties involved.
“The government’s decision, following the consideration of your final recommendation, will be presented as an Executive Bill to the National Assembly. This bill, enriched by the contributions of state governments and private-sector employers, will undergo thorough legislative scrutiny before being passed into law.
“I am hopeful that the Committee will employ the principles of full consultation with Social Partners and their direct participation, considering the core provisions of the International Labour Organisation Minimum Wage Fixing Convention No. 131 and Minimum Wage Fixing Machinery Convention No. 26, both of which have been ratified by Nigeria.”
He advised that the conditions of genuine Social Dialogue should prevail in the spirit of Tripartism and Collective Bargaining Agreements, encouraging them “to engage in collective bargaining in good faith, recognize each other, and maintain a spirit of give and take.
“Additionally, please continue your consultations outside the Committee as you work towards recommending a new National Minimum Wage.
“The Committee is anticipated to conclude its deliberations promptly and submit its report and recommendations. This timely submission is crucial to initiate the necessary processes for implementing a new National Minimum Wage.”
Tinubu announced that the Minister of Finance and Coordinating Minister of the Economy have been instructed to allocate the essential funds and logistics to the committee to facilitate the timely completion of its assigned task.
In his welcome address, the Secretary to the Government of the Federation, SGF, Senator George Akume, said that the committee carries the hopes and aspirations of millions of Nigerian workers, adding that its work will be instrumental in shaping the economic landscape of our nation.
He said, “The past year in the life of our nation has been marked by significant economic challenges The removal of fuel subsidy, while a necessary step towards long-term fiscal sustainability, has undoubtedly imposed temporary hardships on many In recognition of these challenges, the government made a commitment to cushion the effects on workers through a wage award, being implemented currently.
“Today, we take another crucial step in fulfilling that promise by embarking on a comprehensive review of the national minimum wage.
“The Minimum Wage Act of 2019 empowers this Tripartite Committee, composed of representatives of government, organized labour, and employers, to engage in open and constructive dialogue to arrive at a fair and sustainable minimum wage.
“This process is not merely about numbers, it is about recognizing the dignity of work and ensuring that all Nigerians have the opportunity to earn a living wage that allows them to meet their basic needs and participate meaningfully in our society. In return, the workforce, whether public or private must of necessity, ramp up productivity, to sustain whatever would be the outcome of future engagements.
“I urge you to approach this patriotism, task with the spirit of commitment, collaboration, and flexibility and patriotism. Please eschew individual interests and focus on the common good for our dear nation.”
Chairman of the Committee, Buka Goni Aji, in his remarks, said members of the committee shall make extensive consultation to arrive at a new national minimum wage that will be fair, practical, sustainable and implementable.
He said, “I want to assure you, Your Excellency, that with the personalities you have chosen to handle this assignment, I do not doubt in my mind that we have all the expertise required to do this exercise.
“The calibre of personalities I see in this hall, we shall, by the grace of God, make extensive consultations across a broad spectrum to be able to arrive at a new national minimum wage that is fair, practicable, implementable, and sustainable for the good of our people and our country.”
He said the President has provided logistics, adding, “He wants us to move forward. We don’t have any figures in mind. We want a very, very realistic approach based on certain conventions, based on the reality of the Nigerian economy, based also on what you have in our neighbouring countries in West Africa. Nigerian worker, everyone deserves a rise in his pay package.”
The Minister of State for Labour, Nkeiruka Onyejocha, said everything the committee will be doing must end before the 1st of April, adding that there will be no delay.”
“So, there’s no delay because it is something that is backed by the law and we must obey the law. Of course, we’re hopeful that we’re going to speed up the process because all of us know what the issues are.
“Nobody is new in this, we’ve been talking about it since last year. So I think I’m sure that we’re going to deliver based on speed and the expectations of Nigerians.”
Also speaking, the Nigerian Association of Chambers of Commerce, Industry, Mines and Industry and Agriculture, NACCIMA, urged the government to make sure that the prices of commodities in the market are brought down for any minimum wage to make any meaning.
Fielding questions on the effect of the new Minimum wage on the economy, Chief Humphrey Ngonadi, Life Vice President NACCIMA said, “Well, I thank God for this initiative that the government is taking at this place. But I’m being worried.
“We may remember some time ago, that was a Udoji award done. And that was the first time the salary of the workers was increased and immediately after the increment, the commodity in the market ran up to meet it. So while we are talking about minimum wage, I think the government on their side has to think about how to bring down the price of commodities in the market.
“If a worker is paid N1m as a minimum wage and the bag of rice is N900,000, the N1m still has no meaning. So, I think why we are thinking of minimum wage to hike the salary of the workers, the government on their side has to think about how that money will add value.
“Having value is if a bag of rice that was N8,000 yesterday is now N50,000 and you increase the salary of the workers and the price of rice will be N100,000 or N200,000. The salary you increased has no value. So I think the government is going now in the right direction.
“Also, while we increase the salary of the workers let the government work on the price of commodities to come down. If the
dollar steps down now, the price of a commodity will step down. My mind is going that way.”
Nigerians passing through pains, NLC, TUC want FG to act
Answering questions from journalists, on whether organised labour will insist on N200,000 minimum wages, President of the Trade Union Congress (TUC), Festus Osifo, said as of the time the N200,000 was proposed, the economy had not deteriorated to the level it was presently.
He said, “You could remember that, as at that time when we proposed that N200,000 minimum wage if you can recall, that even inflation had not gotten to where it is today. If you also recall when we were doing that proposal, the official exchange rate was somewhere around N450 to $1.
“You could also recall as well that the parallel market rate at then was somewhere around N700 to $1. But today, all these have been shattered. What that means is that we’ll go back to the drawing board. Because Nigerian workers are battered as we speak, I mean the pay today is nothing. So the Nigerian workers as we speak now are facing through excruciating period.
“We’ve had lots of minimum wage negotiations over the years, but this one will stand out. It will stand out because we have never seen a time like this in Nigeria. So this is a period where people are passing through pains.
“The purchasing power of an average Nigerian worker and indeed the entire Nigeria masses has been eroded. So we are going to put on our thinking cap we are going to press to get the best for the working people of Nigeria.”
Also speaking, the Deputy President of the NLC, Prince Adeyanju Adewale said what is expected is commitment from the government and the negotiators.
He said, “If the workers today are expectant, they want a robust minimum wage, I believe there won’t be any rigidity coming from the angle of the government. So I’m in line with what my TUC President said.”
Fielding questions on the challenges anticipated, the governor of Niger State, Mohammed Umar Bago, said, “We don’t want to pre-empt the outcome of this meeting, but you need to understand that the sub-nationals also have challenges and that the federal government, in its wisdom, has brought the sub-nationals into perspective and this discussion will be done together with the sub-national, so I’m not sure we’re going to foresee any challenge.”
On the funding issue, he said, “We are looking for alternative ways of funding and we’re assured that with the backward integration in the economy, a lot of us will be able to stand tall to this challenge.”
Tuesday’s inauguration follows months of agitation from the organised labour who expressed concerns over the FG’s failure to inaugurate the new national minimum wage committee as promised during negotiations last October.
From the government’s side, members include the Minister of State, Labour and Employment, Nkeiruka Onyejeocha, representing the Minister of Labour and Employment; Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who was represented by the Ministry’s Permanent Secretary, Mrs Lydia Jafiya.
The Minister of Budget Economic Planning, Atiku Bagudu; Head of the Civil Service of the Federation, Dr. Yemi Esan; Permanent Secretary, GSO. OSGF, Dr. Nnamdi Maurice Mbaeri; and Chairman/CEO, NSIWC – Member/Secretary, Ekpo Nta, are also members.
Representing the Nigeria Governors Forum are Mohammed Bago of Niger State, representing the North Central; Sen. Bala Mohammed, Governor of Bauchi State- representing the North East; Umar Dikko Radda of Katsina State, representing the North West; Prof. Charles Soludo of Anambra State, representing the South East; Sen. Ademola Adeleke of Osun State, from South West; and Otu Bassey of Cross River State who is representing the South-South.
From the Nigeria Employers’ Consultative Association, Adewale-Smatt Oyerinde, Director-General, NECA; Mr. Chuma Nwankwo; Mr. Thompson Akpabio with also members from the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture are Asiwaju Michael Olawale-Cole, National President; Ahmed Rabiu, National Vice President and Chief Humphrey Ngonadi, National Life President.
The members from the National Association of Small and Medium Enterprises are Dr. Abdulrashid Yerima, President & Chairman of the Council; Hon. Theophilus Nnorom Okwuchukwu, Private Sector representative; Dr Muhammed Nura Bello, Zonal Vice President, North West and also from the Manufacturers Association of Nigeria are Mrs. Grace Omo-Lamai, Human Resource Director, Nigerian Breweries; Segun Ajayi-Kadir, Director-General, MAN; Lady Ada Chukwudozie, Managing Director, Dozzy Oil, and Gas Limited.
From the organised labour are the President of the Nigeria Labour Congress, Comrade Joe Ajaero, the General Secretary, Comrade Emmanuel Ugbaja, the Deputy President, Prince Adeyanju Adewale; Ambali Akeem Olatunji; Benjamin Anthony and Prof. Theophilus Ndukuba.
Also, members from the Trade Union Congress of Nigeria are Festus Osifo, President, TUC; Tommy Etim Okon, Deputy President I, TUC; Kayode Surajudeen Alakija, Deputy President II; Jimoh Oyibo, Deputy President III; Nuhu Toro, Secretary-General and Hafusatu Shuaib, Chairperson Women Comm.
