State governors must take new minimum wage seriously
Last week, President Bola Ahmed Tinubu signed the National Minimum Wage Bill 2024 into law, capping a lengthy and contentious negotiation process.
The bill, swiftly passed by the National Assembly last week, represents the culmination of efforts initiated earlier this year when the federal government established a Tripartite Committee to determine a new national minimum wage for Nigerian workers.
Inaugurated on January 30, 2024, the committee included representatives from the federal and state governments, the private sector, and Organised Labour, and was chaired by Bukar Goni Aji, a former head of the service of the federation.
After protracted discussions, the committee settled on N70,000 as the new minimum wage for Nigeria’s lowest-paid workers. This agreement also shortened the period for wage renegotiation from five years to three, a notable development.
However, the new minimum wage, though a compromise, falls significantly short of the initial expectations set by labour unions. Initially, labour demanded N615,000, adjusting their proposal down to N500,000 and then N250,000 as negotiations progressed. The federal government, on its part, started with a proposal of N45,000 and gradually increased it to N62,000 before settling at N70,000.
While the resolution of this prolonged debate is welcomed by many, the reality is that N70,000 may not suffice to meet the basic needs of workers in Nigeria. With the relentless rise in inflation, the cost of essential items such as food and transportation has surged, rendering the minimum wage insufficient.
Symbolically, N70,000 is barely enough to purchase a bag of rice, let alone a bag of beans, highlighting a stark disconnect between the minimum wage and the cost of living. This new wage structure, though a step forward, underscores the ongoing challenge of ensuring that wages keep pace with inflation and the cost of living. It is imperative that future adjustments address the widening gap between earnings and expenses, ensuring that workers are fairly compensated in line with economic realities.
Now that the new wage figure has been finalised and signed into law, it is imperative for all levels of government—federal, state, and local—to ensure its full implementation. Private sector organisations that fall within the salary bracket must also comply.
Senate President Godswill Akpabio has reiterated that the new minimum wage law applies to all Nigerian workers, including domestic staff like drivers, cleaners, and housemaids. This means that the law has been amended to include all workers, regardless of the size of the organisation or their employment status.
However, there are concerns about how effective the law will be, particularly for domestic staff who may not have the same level of protection or union representation as other workers. Additionally, the private sector has expressed concerns about their ability to pay the new minimum wage, and some state governors had reportedly argued for a lower wage benchmark.
Despite these challenges, President Bola Ahmed Tinubu has expressed his commitment to ensuring that workers receive a living wage. Now that the law has been signed, it is essential that all levels of government and private sector organisations comply with the new minimum wage.
We urge state governors, in particular, to take the law seriously and ensure its full implementation. Richer state governments should consider paying more than the minimum wage to support their workers better. It is crucial to depart from the past, where many state governors failed to implement the N30,000 minimum wage approved in 2019, despite the erosion of workers’ purchasing power over the years.
The Tinubu administration must find a way to enforce compliance among state governors. Historically, many governors have accumulated significant wealth from state resources and invested in projects unrelated to the welfare of their citizens. However, when it comes to salary payments, they often cite various excuses.
This practice must end. It is, after all, at the pith of the current national protests. An electorate that remains stolid in the face of its citizens’ suffering shoots itself in the foot.
