Negotiations over Nigeria’s new minimum wage hit a stalemate on Wednesday as the tripartite committee, consisting of the Federal Government, organised private sector, and organised labour, failed to reach an agreement. The discussions, which took place in Abuja, will resume on Tuesday, May 28.
Initially, the Federal Government maintained its offer of N54,000, citing limited funds. However, after a 30-minute recess for further deliberations, the government, along with the organised private sector, increased their proposal to N57,000. This new offer was still rejected by labour, which countered with a demand for N497,000.
A source familiar with the negotiations told The PUNCH, “The final proposal from labour was N497,000 after the government and the private sector proposed N57,000. Initially, the government refused to move from N54,000, citing insufficient funds.”
Representatives from labour, including governors Godwin Obaseki and Hope Uzodinma, participated in the meeting, with Governor Charles Soludo joining via Zoom. Labour leaders expressed frustration over the government’s approach. “We as Labour reject the proposed N57,000 and the meeting has been adjourned till Tuesday next week,” the source added.
A senior official from the Nigeria Labour Congress (NLC) described the government’s revised offer as inadequate. “The Federal Government increased it from N54,000 to N57,000, and the organised labour moved from N615,000 to N500,000, and then to N497,000. The outcome of the negotiation is not encouraging,” the official said.
The tripartite committee was inaugurated by Vice President Kashim Shettima on January 30, 2024, with a mandate to recommend a new national minimum wage ahead of the expiration of the current N30,000 wage on April 18. The committee’s membership includes representatives from federal and state governments, the private sector, and organised labour.
During the inauguration, Shettima urged the committee to expedite their deliberations and submit their report promptly. “This timely submission is crucial to ensure the emergence of a new minimum wage,” Shettima said.
As part of the process, zonal public hearings were held on March 7 in various locations, including Lagos, Kano, Enugu, Akwa Ibom, Adamawa, and Abuja. During these hearings, different NLC and TUC chapters proposed various figures based on regional economic conditions.
For instance, in the South-West, NLC members demanded N794,000, while TUC suggested N447,000. In the North-Central, the demand was N709,000, and in the South-South, workers called for N850,000. Ultimately, organised labour settled on a demand of N615,000.
The adjournment to next week provides another opportunity for the parties to find common ground. Labour representatives are calling for serious negotiations to meet the economic needs of Nigerian workers amidst rising living costs.