Update on Nigeria’s Minimum Wage Negotiations

The Federal Government of Nigeria has increased its proposed national minimum wage to N62,000.

In response, organized labour has revised its demand from N494,000 to N250,000. This development follows the submission of a report by the Minister of Finance, Wale Edun, to President Bola Tinubu, outlining the cost implications of implementing a new minimum wage.

Advertisements

A source confirmed this to our correspondent on Friday night in Abuja.

“After wasting our time, they finally came up with the offer of N62,000 which was backed by the private sector. Labour also reduced ours to N250,000. This is embarrassing,” the source who is part of negotiation from the labour side said.

RECOMMENDED:  Report: $15 minimum wage bill would benefit 20.7 million workers

The PUNCH reports that Tinubu had earlier directed Edun to present the cost implications for a new minimum wage within two days.

The President gave the order at a meeting with the government negotiation team led by the Secretary to the Government of the Federation, George Akume, at the Presidential Villa in Abuja.

Though Edun has submitted the proposal to the president, it has not been made public.

Recall that organised labour, comprising the Nigeria Labour Congress and Trade Union Congress, had embarked on a nationwide strike on Monday to demand an increased minimum wage for workers and the reversal of the recently increased electricity tariffs.

RECOMMENDED:  Minimum Wage: Again, Labour rejects N54,000 proposed by FG

However, the labour union leadership suspended the strike on Tuesday for five days after signing a commitment with the Federal Government to resume negotiations and come up with a new minimum wage within a week.

It is not yet clear if labour will accept the new proposal from the government.

The Nigerian Governors Forum had, earlier on Friday, said any minimum wage above N60,000 will not be sustainable.