Organised Labour is considering a minimum wage of N100,000 as the Tripartite Committee on National Minimum Wage begins daily meetings to negotiate a new wage structure. This move comes after initial demands for a N494,000 minimum wage faced backlash and were deemed impractical.
Multiple sources within the labour movement disclosed to The PUNCH on Tuesday that union leaders are now aiming for a more feasible figure of N100,000. This shift follows widespread criticism of their earlier proposal, which the Minister of Information and National Orientation, Mohammed Idris, described as financially unsustainable.
“The proposed minimum wage would result in an annual expenditure of N9.5 trillion, which is untenable for the nation’s finances,” Idris stated.
The ongoing negotiations are critical, as they follow an indefinite strike by labour that has disrupted economic activities nationwide. Banks, airports, public schools, and courts have been shut down, prompting the Federal Government to call for an emergency meeting. Despite the National Assembly’s intervention, the strike continued until a temporary truce was announced on Tuesday.
Union leaders agreed to a five-day suspension of the strike after President Bola Tinubu expressed willingness to exceed the initial N60,000 offer. The President has directed the Minister of Finance, Wale Edun, to present the financial implications of a new minimum wage within 48 hours. The directive was issued during a meeting with the government negotiation team at the Presidential Villa in Abuja.
A senior Nigerian Labour Congress (NLC) official, speaking anonymously, confirmed that the unions are prepared to settle for N100,000.
“Today’s meeting was essentially to set an agenda and plan how to complete the assignment within five days,” the official noted.
The official emphasized that the government representatives did not discuss a raise beyond N60,000 during the meeting.
Prof. Theophilus Ndubuaku, Deputy Head of the NLC Political Commission, confirmed the agenda-setting nature of the Tuesday meeting.
“We met today to draw up an agenda for the one-week daily meeting,” Ndubuaku said, adding that the unions have only “relaxed” their strike, keeping workers on high alert for possible resumption.
Labour leaders remain firm on rejecting any minor adjustments to the current offer. Festus Osifo, President of the Trade Union Congress (TUC), made this clear during an interview on Channels Television’s “Politics Today.”
“We also told them that it’s not acceptable to just add N1,000 or N2,000 as they have been doing,” Osifo said.
While labour has backed away from the initial N494,000 demand, Osifo stressed that any new minimum wage must be adjusted for current inflationary pressures. The new wage should reflect the purchasing power equivalent of N30,000 in 2019 and N18,000 in 2014, he argued.
As part of the negotiations, President Tinubu has tasked the finance minister with calculating the costs associated with the proposed wage increase.
Mohammed Idris, in a statement, reiterated the “commitment of the President to a sustainable and realistic minimum wage.”
“The government is not against wage increase but must balance financial realities,” Idris emphasized.
The labour unions have also voiced concerns over the recent hike in electricity tariffs. They have demanded that the tariffs be reverted to N66/kWh and called for the abolition of discriminatory consumer bands.
The unions warned that “these issues, along with the wage increase, are critical to alleviating the financial burden on Nigerian workers.”
In the legislative arena, opposition lawmakers have urged the government to adopt a minimum wage of at least N100,000. Minority Leader of the House, Kingsley Chinda, criticized the current wages as insufficient and a breach of constitutional responsibilities.
“In Nigeria today, any wage below $200 (N298,800) is ridiculous,” Chinda said.
Similarly, other lawmakers have proposed figures ranging from N90,000 to N150,000, reflecting the urgency of addressing the economic challenges faced by Nigerian workers. Senator Orji Kalu suggested a compromise of N90,000, arguing that it balances inflationary pressures and productivity concerns.
Kingsley Moghalu, former Deputy Governor of the Central Bank of Nigeria, weighed in via social media, recommending a minimum wage between N75,000 and N100,000.
“The level of productivity in the economy cannot support a N494,000 minimum wage,” Moghalu stated.
The Senate has called for a collaborative effort to draft a new wage bill, emphasizing the importance of stabilizing the naira’s value to ensure the new wage has a meaningful impact.