The Senate on Tuesday approved N30,000 monthly as the new National Minimum Wage in Nigeria, even as it called for review of the revenue sharing formula to enhance states’ capability to pay.
The amount is N3,000 higher than the N27,000 which President Muhammadu Buhari presented to the National Assembly in the executive bill in January this year.
Also, the Senate called on the Ministries of Finance as well as Budget and National Planning to immediately forward to the National Assembly for inclusion in the 2019 budget the actual amount required for the new National Minimum Wage.
This followed the presentation and consideration of the report of the Senate Adhoc Committee on the National Minimum Wage at Tuesday plenary.
The Senate in approving the report, however, rejected the proposal by President Muhammadu Buhari that a fine of N5,000 be imposed on any employer who failed to keep records of workers. Instead, the upper legislative chamber imposed a fine of N75,000 on such defaulters.
It also said that the Federal Government should put in place procedure that will lead to a review of the Revenue Sharing Formula to enhance states’ capabilities towards implementation of the new wage.
BusinessDay reports that the revenue sharing formula stands at 56% for the Federal Government, 24% for states and 20% for Local Governments.
In their separate contributions, some lawmakers argued in support of requests by some state governments for a review of the revenue formula but were unsuccessful.
Senate Minority Whip, Biodun Olujimi (PDP, Ekiti) drew the attention of her colleagues to the fact that review of Revenue Sharing Formula is key to the implementation of the minimum wage, pointing out that without it many states won’t be able to pay.
On his part, Barnabas Gemade (SDP, Benue) was of the view that the State Governments had enough money to pay, arguing that “With the kind of money deployed to buy votes, it means the States have so much money to pay workers”.
Also, James Manager (PDP, Delta) however believed that it has become embarrassing that some states had not paid the N18,000 minimum wage.
It would be recalled that the House of Representatives had on January 29 approved N30, 000 as minimum wage for workers in the public and private sectors.
The minimum wage Bill as presented by President Muhammadu Buhari sought to prescribe the National Minimum Wage for the Country and provide a legal framework for ideal review of the national minimum wage in line with the period specified under the Bill.
The 18-clause Bill provides for the establishment of a Tripartite Committee on National Minimum Wage by Mr. President with equal representation from the Federal, State Governments, Organized Labour and Organized Private Sector with the Secretariat to be domiciled in the National Salaries, incomes and Wages Commission.
The Bill provided that the Tripartite Committee shall compose of a Chairman, a Secretary, Government representatives (the Secretary to the Government of the Federation, Head of Civil Service of the Federation, Minister of Labour and Employment, Minister of Finance, Minister of Budget, National Salaries, lncome and Wage Commission and State Governor from each of the six Geo-political Zones to be nominated by Governors from the Zones.
