Minimum Wage: Drama As Labour Abandons N25,000 Demand, Speaks On What Will Happen If Tinubu, NASS Approve N62,000

Organised labour seems to have softened its stance on demanding a N250,000 minimum wage.

Festus Osifo, President of the Trade Union Congress (TUC), stated that the N250,000 figure was not fixed and labour was open to negotiations.

As of last night, the federal government had not responded to this new position from organised labour. Meanwhile, the Senate promised to fast-track the consideration and passage of the new minimum wage bill from President Bola Tinubu.

Last Wednesday, Nigeria Labour Congress (NLC) Acting President Prince Adewale Adeyanju reiterated the demand for N250,000, citing no compelling reasons to change this stance, which he described as a significant concession by Nigerian workers during the tripartite negotiation process.

This followed President Tinubu’s Democracy Day address, where he mentioned reaching an agreement on the new national minimum wage. Initially, Osifo had reacted to the government and Organised Private Sector (OPS) agreement on N62,000 as the minimum wage, expressing that given the current economic challenges, N250,000 would be more appropriate.

However, on Channels Television’s “The Morning Brief,” Osifo clarified that “no figure is sacrosanct; there is no figure cast in stone that both parties will be fixated on.” He emphasized that labour is open to adjustments, explaining that their earlier industrial action was partly due to the inflexibility of the N60,000 figure proposed by the government, which they refused to increase even slightly.

President Tinubu is expected to propose an executive bill on the new minimum wage to the National Assembly. Osifo mentioned that while labour won’t pre-empt the President’s decision, they are actively advocating for a figure closer to their demand. He assured that if the proposed figure is unfavourable, labour will appeal to lawmakers to push for a higher amount.

Osifo pledged that labour leaders’ efforts will continue until the Minimum Wage Act 2024 is enacted. He said it is too early to predict labour’s response if the final figure from the executive and legislature is unsatisfactory.

The federal government and OPS had agreed on May 31 to a minimum wage of N62,000, a slight increase from the previously rejected N60,000. However, Governors of the 36 states claimed they could not afford even the N60,000. In contrast, the NLC and TUC maintained that the lowest acceptable figure was N250,000, significantly reduced from their initial demand of N494,000.

The Tripartite Committee has submitted its recommendations to the President, who will decide on the final figure to propose to the National Assembly. Osifo reiterated labour’s commitment to advocating for their proposed figure, indicating that any unfavourable decision from the President would lead to further lobbying of the lawmakers. But if that move fails, then labour would decide another course of action to take.