Why we accepted N70,000 minimum wage — Labour

…Cites current economic challenges for decision
….FG sets three yearly review of Minimum Wage

After about six months of intense agitations and negotiation, the federal government and members of the organised labour on Thursday finally agreed to fix the national Minimum Wage, at N70,000 for the next three years.
It was gathered that President Bola Tinubu had fixed the Minimum Wage at N70,000, as against the N62,000 earlier fixed by the federal government’s team at the Tripartite Committee on the Minimum Wage.
BusinessDay gathered that the President used all the instruments if persuasion to get labour to accept the figure, despite initially insisting on the sacrosanct of its demand of N250,000.

Mohammed Idris, Minister of Information and National Orientation, described the development as a happy moment for the country.

“We’re happy to announce today that both the federal government and organized Labour have agreed on an increase on the N62,000. The new national minimum wage that we expect us to present to submit to the National Assembly for legislation is N70,000.

Read also: Tinubu sets minimum wage at N70,000

“But that is not all. There is also a boost like Mr. President has assured in ensuring that massive investment is going to be made in the area of infrastructure. There is also a deepening of the investment of the federal government in renewable energy. More money is going to go into the acquisition of more buses, the CNG buses, Nigeria is going to be more CNG compliant, according to the President.

“We’re moving in this transition to renewable and all other things that Mr. President has assured Labour the issue of sun and SSANU and NASU is also going to be looked at. And we are happy, we are very thankful of the role that the organized labour has played today. They recognized the federal government’s role in ensuring that we have the local government autonomy, and also ensuring that both the organized Labour and the government are on the same page today.

“They have seen the magnanimity of the President and today the leadership of Laborur said they didn’t come here for negotiation. Not at all, they came here in that deep sense of patriotism to ensure that Nigeria remains united, Nigeria becomes more prosperous and it is in that spirit, that they are in agreement with what the federal government has done today.

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“We want to thank level for their patriotism. We also want to thank Mr Presiden, the federal Government, the sub-nationals and organize private sector for going through this painstaking effort but also ensuring that at the end of the day Nigera is the winner for it all.

He disclosed that the President also reduced the number of years for review of the national minimum wage from the previous five yearly review to now three years.

The figure was arrived at after a meeting with the organised labour led by Joe Ajaero, President of the Nigeria Labour Congress NLC and Festus Osifo, President of the Trade Union Congress TUC, on Thursday, at the Presidential Villa, Abuja.

Mohammed Idris, Information and National Orientation Minister announced the figure while briefing State House Journalists at the Presidential Villa, Abuja.
The announcement brings to a close, about six months of intensive consultations and negotiations that followed the January 30th inauguration of the 37 man Tripartite Committee on the national minimum wage.
Recall that the deliberations of the committee had ended in deadlock on the 7th of June, 2024, with government team recommending N62,000 and Labour making a recommendation of N250,000?
Following the disagreements, both sides insisted on sending separate reports to the President for his consideration.

Read also: Kogi, Kano, Oyo, others will struggle to pay new minimum wage, says report
President Tinubu since then embarked on “ wide consultations” with relevant stakeholders including the Governors before finally engaging with the organised labour.

The President also directed that the minimum wage will be reviewed every three years.
Joe Ajaero, President of the NLC, who stated that the organised labour was accepting the figure “ with fixed feelings “ however said the labour Union will have to move ahead.

He also commended President Tinubu for agreeing to review the Minimum Wage, every three years.
“Well, we’re here last week. And we’re here now, what have announced in terms of the amount of N70,000 happened to be where we are now. But the cool thing about it is that will not wait for another five years to come on review. Rather than settling on a figure that we wait for five years, is like we’ll have to now negotiate even two times within five years, with a view to going up.

“That is one of the reasons you know why we decided to reach where we are today. Because of the proviso that you know, you can review the next three years.
“The other one, we came with other issues in the basket, like the issue of SSANU, NASU and others, especially with the affront by the Commissioner of Police FCT, we brought it to Mr. President, and talk of the need, you know, for that matter to be addressed.

“ And magnanimously, he asked the agencies concerned to work out the modalities for the payment of those workers in the universities.

“So far, he has done well. So we need to…although he promised some incentives like the CNG which will lessen the burden that the Nigerian workers are passing through, but you can see that we are taking in this well with mix filling because of the situation of the of the economy.

“But we have to move ahead despite the situation, and the negotiation can’t linger, you know, coming from N62,000 to N70,000. And then with the proviso that we are coming back soon to negotiate it.

“We’re taking it back to our constituency to see how you can get a buy in. So that’s what has transpired this afternoon except there’s another question.

Festus Osifo, the TUC President, disclosed that “ The President made a pronouncement or announcement of N70,000 and that by next week, they should put finishing touches to the bill and do the transmission to the National Assembly
“But why this became a catch is actually because we from organized labour, we have been pushing than that the issue of five years review is to me too much, that in five years, a lot a lot of economic indices economic indices may have changed, because we are in an era where things are moving very fast in terms of both macro, and micro economic policies.

“But now, there is a caveat, that this is going to be done every three years. The next review be in three years.

“ We have received what the President has promised from both ends. And as he said, as well, we made a case for both the SSANU and NASU, that the President should, as a father of the nation, look at it compassionately, so that we will not have a case where the universities would be closed again.
“That is actually a problem because it is your children, my brothers that attend these universities. I’m not sure that the kids of the bougoise like those standing behind us, whether they attend these universities, we don’t know.
So, at the end he said he was going to look at it and that they should report back to him as has been reported.

“So we are quite excited with that. Because for us, anything that will keep the university shut down, we will not allow it to happen. we will do everything possible to ensure that the issues are resolved amicably. So, we are waiting for the final outcome of that.

The NLC also commended the President on the issue of student loan, but made a case for transparency

“ we commended the president for that. but we said that the money should get to the people that are targetted. that the student loan should get to the people that are targetted, not a situation where the children of the rich are also able to access the student loan. that the parameter be put in place so that the childen of the poor, those that cannot actually afford school fees should be the target and they also said they will look at it as well”