Senate to pass additional N6.2trn to fund new minimum wage
…As Tinubu signs N70,000 minimum wage bill into law
…Ends months of deliberations with Labour
The Nigerian Senate will pass an additional budget of N6.2 trillion aimed at funding the implementation of the new minimum wage across various sectors. This move comes amidst efforts to address the economic implications of the wage increase and ensure adequate funding for public sector salaries.
This is as President Bola Tinubu has signed the minimum wage bill into law, increasing the national minimum wage from N30,000 to N70,000, in a move that ends months of deliberations between government authorities, labour unions, and the private sector.
He has signed the minimum wage bill into law, setting a new national minimum wage of N70,000.
The signing ceremony took place at the State House in Abuja on Monday, witnessed by a National Assembly delegation led by the President of the Senate, Godswill Akpabio.
The Special Adviser to the President on Senate Matters, Basheer Lado, described the move as “a promise kept and a demonstration of his people-centric governance model.”
He added, “Tinubu promised to pay a living wage to Nigerian workers during his electioneering campaigns and he has kept that promise.”
The signing followed months of talks with labour unions, which had initially proposed N494,000 as a new minimum wage. After a series of negotiations, the workers demanded N250,000, while the government offered N62,000. A consensus figure of N70,000 was eventually reached on July 18.
The Minister of Information, Mohammed Idris, said, “We are happy to announce today that both the organised labour and the Federal Government have agreed on an increase on the N62,000 minimum wage. The new national minimum that Mr President is expected to submit to the National Assembly is N70,000.”
The new law comes as the cost of living soars in Nigeria, with Nigeria’s inflation figure hitting 34 percent in June 2024, according to the National Bureau of Statistics (NBS).
A National Assembly delegation led by the President of the Senate Godswill Akpabio and some members of the House of Representatives were around to witness the ground-breaking event.
Following the signing, the Special Adviser to the President on Senate Matters, Basheer Lado, said the move is a promise kept.
“The signing of the minimum wage bill into law by His Excellency, President Bola Ahmed Tinubu is both a promise kept and a demonstration of his people-centric governance model,” he noted.
“Tinubu promised to pay a living wage to Nigerian workers during his electioneering campaigns and he has kept that promise.”
The N70,000 will also be reviewed every three years. After the truce, President Tinubu immediately transmitted the bill to the National Assembly for passage. The lawmakers wasted no time in doing that, passing the bill in one day.
While labour had also insisted on a better deal for workers owing to the hike in the cost of living, Tinubu who swept to power in May last year had promised that his government would only pay what is sustainable.
“You have to cut your coat according to the available cloth. Before we can finalise the minimum wage process, we have to look at the structure,” Tinubu insisted after meeting labour leaders.
Meanwhile, President of the Senate, Senator Godswill Akpabio, described the signing of the Minimum Wage Act (Amendment) Bill into law by President Bola Tinubu as a great day for Nigerian workers, noting that the new national minimum wage of N70,000 applies to all employers.
Akpabio made the remark during the signing ceremony at the State House, Abuja.
“This is a great day for the workers in the country. We are not only doubling the minimum wage, we have added something on top. Initially, it was N30,000, now it is N70,000,” he said.
Akpabio emphasised that the new minimum wage applies to all employers, stating, “No Nigerian worker will offer services and be paid anything less than N70,000 from today. That is the implication of this act. It applies all over the nation.”
He also commended the National Assembly for passing the bill in one day, saying, “We felt that this was not something we could delay. So, I think the workers are happy.”
Akpabio appealed to the youth not to allow any group to mislead them politically, noting that destruction of any property would cause Nigeria money.
He also assured that the Amendment Bill to fund the full implementation of the newly signed national minimum wage law will be passed on Wednesday, July 31, 2024, with an additional N6.2 trillion to support the new salary structure.
The Bill seeks to amend the Appropriation Act of 2024 to provide funds for the new salary structure with an additional N6.2 trillion.
Akpabio, in an interview with State House correspondents on Monday, emphasised that the implication of the newly signed Wage Act was to ensure that no Nigerian worker is paid below the approved minimum wage.
