The Federal Executive Council has delayed making a decision on the new minimum wage to allow President Bola Tinubu more time to consult with key stakeholders.
The announcement was made on Tuesday by the Minister of Information and National Orientation, Mohammed Idris, during a briefing with State House correspondents.
Idris explained, “The President has studied the report submitted by the Tripartite Committee on Minimum Wage and will consult further before a final submission on a new national minimum wage to the National Assembly.”
The current Minimum Wage Act, which set the minimum wage at ₦30,000, expired in April 2024. President Tinubu established a Tripartite Committee in January to negotiate a new minimum wage. This committee includes representatives from Organised Labour, federal and state governments, and the Organised Private Sector.
Despite extensive discussions, the committee members could not agree on a new minimum wage. This led to an indefinite strike declared by labour unions on June 3, 2024. The strike disrupted businesses, including airports, hospitals, the national grid, banks, and legislative complexes.
The labour unions argue that the current ₦30,000 minimum wage is insufficient due to rising inflation and the effects of recent government policies like petrol subsidy removal and forex window unification. They demand a wage that reflects these economic pressures.
Labour unions initially demanded ₦494,000 but later reduced their demand to ₦250,000. In response, the government increased its offer from ₦60,000 to ₦62,000. Both sides presented their reports to the President, who is expected to decide and send an executive bill to the National Assembly.
In his Democracy Day speech on June 12, 2024, President Tinubu reassured Organised Labour, saying, “An executive bill on the new national minimum wage for workers would soon be sent to the National Assembly for passage.”
The President now faces the challenge of balancing the ₦62,000 proposal from the government and private sector with the ₦250,000 demand from Organised Labour.
