Federal Government Offers N62,000 as New Minimum Wage, Labour Adjusts Demand to N250,000
The Federal Government and the organized private sector have reached a consensus to raise the proposed new minimum wage to N62,000, up from the initial offer of N60,000. However, in a significant shift, organized labour has adjusted its demand from N494,000 to N250,000.
The conclusion of discussions by the tripartite committee, established by the Federal Government several months ago, marks a pivotal moment in the ongoing debate over minimum wage reform.
The recommendations resulting from these negotiations will be submitted to President Tinubu, who is expected to present an executive bill to the National Assembly for further legislative action.
The establishment of the tripartite committee earlier this year aimed to address the growing consensus that the current minimum wage of N30,000 is no longer adequate in light of the nation’s economic realities.
However, finding common ground on the new figure has proven to be a challenging task.
While the government and the organized private sector expressed concerns over labour’s initial demand of N494,000 as unsustainable, labour deemed the government’s offer of N60,000 insufficient.
The recent strike action initiated by labour on June 3, following the expiration of an ultimatum issued on May 31, led to the shutdown of businesses across the nation.
However, the strike was temporarily suspended on Tuesday after the Federal Government pledged to increase the minimum wage beyond the N60,000 mark, facilitating the resumption of negotiations.
Despite the increment of N2,000 to the previous offer, labour remains adamant about accepting anything less than a significant increase. Festus Osifo, President of the Trade Union Congress (TUC), emphasized on a televised program that mere additions of a few thousand naira would not be acceptable.
Conversely, the 36 state governors have expressed concerns over the sustainability of the proposed N60,000 minimum wage, asserting that it would strain state finances.
They urged the tripartite committee to devise a minimum wage that is both fair and viable for all parties involved.
