Organised Private Sector (OPS) has endorsed the Federal Government’s decision to implement N30,000 new minimum wage agreed to by tripartite national minimum wage committee and the National Assembly.
President Muhammadu Buhari signed the minimum wage bill into law on Thursday, April 18, thus setting the stage for the commencement of implementation of the new wage benchmark, up from existing N18,000 which came into effect in 2011 under former President Goodluck Jonathan.
There are, however, concerns about the ability of some state governments to pay the new benchmark. Analysts believe it will balloon states’ existing wage bills and put further pressure on their recurrent expenditure thus living very little for capital projects which the economy is in dire need of.
Only a few states have been faithfully paying the N18,000 minimum wage. Many of the 36 states of the federation have either not paid or paid in installments.
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But Timothy Olawale, the Director General of Nigeria Employers’ Consultative Association (NECA), a key member of the OPS, welcomes the signing of the wage bill by President Buhari.
“The organised businesses wish to commend the President for attending to the national minimum wage bill as sent by the National Assembly. It shows that he cares for the welfare of the masses and working class in particular. We believe that the implementation date will be the date of assent,” says Olawale.
The DG explains that the national minimum wage is not a general salary increase but a wage below which no employer should pay.
According to him, employers who are already paying above N30,000 are not obligated to comply while urging other social partners to respect the position of the law so as not to jeopardise the peace in the private sector.
Peter Ozo-Eson, the general secretary of the Nigeria Labour Congress (NLC) believes that with the signing of the bill, implementation should immediately commence just as he appreciates President Buhari for not disappointing labour.
“We urge employers, particularly federal and state governments, to commence immediate negotiations with the appropriate unions on the impact of the new law on the wage structure with a view to timely and judicious implementation,” says Ozo-Eson.
Bobboi Kaigama, president of the Trade Union Congress (TUC) says the new wage will give workers a sense of belonging.
He says further that “while labour appreciates the approval of the new wage, it is also instructive to note that its gains have been eroded by inflation as prices of commodities have gone up.”
The new wage is coming into force after more than a year of negotiation by the tripartite committee and to by the organised labour.
JOSHUA BASSEY
