The National Minimum Wage Act of states that the minimum wage must be reviewed every five years. Vice President Kashim Shettima inaugurated a 37-member to do so in January 2024. However, the committee did not take action until after the Nigerian Labour Congress鈥 on February 27 and 28, 2024, holding its first meeting on March 7, 2024, to discuss the prospects of increment.
Here are the details of that conversation:
First off, how does a 鈥渕inimum wage鈥 conversation affect you?
If you are a Nigerian working in either the public or private sector, the Minimum Wage Act is what ensures you get enough to meet up with the cost of living. The minimum wage is the lowest possible amount of money an employer can pay his employee as regulated by the government.
The industrial wage unions, trade unions and labour organisations ensure this rate is adhered to and reviewed when necessary. This is why the Nigerian Labour Congress (NLC) the economic conditions that have rendered the current wage useless.
Rising from 鈧18,000 in 2019, the minimum wage in Nigeria currently stands at 鈧30,000 per month.
What’s the update on the minimum wage conversation?
The 37-member committee held regional on March 7, 2024, where stakeholders suggested new minimum wage figures to alleviate the high living costs.
In the South-West, the NLC leaders proposed 鈧794,000, while the Trade Union Congress (TUC) proposed 鈧447,000. In the South-East, the NLC said it preferred 鈧540,000. South-South workers proposed 鈧850,000, and their North-West counterparts angled for wages of 鈧485,000, while the North-Central union suggested 鈧709,000.
We鈥檙e pretty sure the current NYSC members are on their toes for this one as it directly affects their allawee.
The Nigerian government鈥檚 response
In response to this, the Nigerian Governor鈥檚 Forum and the Nigerian Employers Association asked the committee and labour unions to consider the current economic realities and individual capabilities of the states and employers to meet the proposed amounts.
, including Oyo, Kogi and Delta, among others, can鈥檛 keep up with the current wage payments and have incurred internal . On February 8, 2024, the Central Bank of Nigeria (CBN) stopped giving the granted by former CBN Governor Emefiele to state governments struggling with wage payment and . The debt and will also affect the states鈥 capacity to pay an increased minimum wage.
What鈥檚 likely to happen?
With each sector proposing wages in the hundreds of thousands, another strike may be unavoidable. The is expected to come on May 1, 2024. However, the wage implementation will be backdated to , as all processes regarding the minimum wage are expected to have been completed by then.
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