NLC Voices Opinion On Appropriate Minimum Wage Level In Recent Statement
The Nigeria Labour Congress (NLC) has assembled a team to engage in negotiations with the Federal Government concerning the upcoming minimum wage. This move follows President Bola Tinubu’s announcement in his New Year address
that his administration intends to implement a “national living wage” during the current year.
The existing minimum wage, which was negotiated in 2018, is set to expire in April 2024, as each agreed-upon minimum wage typically holds a five-year lifespan. President Tinubu emphasized the commitment to address the economic well-being of the poor and vulnerable, asserting the implementation of a new national living wage as both economically sound and morally and politically correct.
Joe Ajaero, the President of the Nigeria Labour Congress, outlined the criteria that will be considered before arriving at an acceptable minimum wage figure, suggesting that, if Labour has its way, the next minimum wage may not be less than N200,000.
In an interview with Vanguard, Ajaero provided insights into the situation surrounding the establishment of the negotiation committee, stating that while the committee has not been constituted yet, the names of the labour team representatives have been submitted.
Addressing the timeframe for implementing the minimum wage, Ajaero acknowledged that the government had not fully adhered to previous agreements, citing issues like the N35,000 petrol subsidy palliative, which was paid for only one month. He emphasized the need to start from where they stopped and move forward.
Regarding the proposed N200,000 minimum wage, Ajaero clarified that the figure was based on an evaluation of the value of $200 at the time. Adjusting for the current circumstances, considering a dollar is approximately a thousand two hundred naira, the negotiation will factor in prevailing economic conditions.
Ajaero highlighted key considerations for Organized Labour during the negotiation, including the cost of living, currency devaluation, and the comparison of the labour market with countries sharing similar economic indices. The projected implementation timeline for the new minimum wage is set for April.
