Why N200k Minimum Wage No Longer Realistic, NLC Explains

• The hope of Nigerian civil servants has been dashed following a new minimum update from the Nigerian Labour Congress (NLC)
• President Bola Tinubu has unveiled a 37-member committee to review the national minimum wage
• However, the NLC, shortly after the inauguration of the minimum wage review committee, said the proposed N200,000 for workers is no longer obtainable

Legit.ng journalist Segun Adeyemi has over 9 years of experience covering political events, civil societies, courts, and metro

The Nigerian Labour Congress has reconsidered its initial proposal of a N200,000 minimum wage to the Federal Government, acknowledging that it is no longer practical in light of the country's current economic conditions.

The statement was made by the National Vice President, Tommy Etim, in response to the inauguration of the Minimum Wage Committee by Vice President Kashim Shettima on Tuesday, January 30.

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Etim emphasised that the committee will now approach national minimum wage negotiations based on the present economic situation rather than its earlier suggestion.

As quoted by Punch, he said:

“You are aware that when we opted for the N200,000, the socio-economic challenges were not as biting as they are now. And when you now look at the exchange rate, it was not what it is now. The naira rate not been devalued as it is now. So, N200,000 is no longer tenable.”

Etim was asked about the lowest sum that the congress intended to present to the committee, and he provided a reply:

“We are not going there with a fixed amount, but definitely not N200,000. By the time we get there, we will decide based on the socio-economic situation. That’s what we are going to base our national minimum wage discussion and negotiation on.”

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Reacting to the assertions of the NLC, Moshood Isah, a public affairs analyst, said there is a need for organised Labour to adopt a mechanism to ensure adherence to the minimum wage at all levels as there are still reports that many states are yet to implement the previous minimum wage.

In a chat with Legit.ng, he said:

"While the NLC should be on the side of Nigerian workers at all times, especially considering economic realities, there is a need to be realistic when negotiating minimum wage for workers.

"This is to ensure the sustainability of wage structures across the board.

"NLC should also have a mechanism to ensure adherence to the minimum wage at all levels, as there are still reports that many states have yet to implement the previous minimum wage.

"Beyond this, there is a need also to make civil servants more productive."

Inauguration of 37-member committee for review of minimum wage

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On Tuesday, January 30, the Federal Government unveiled its 37-member wage committee to expedite their discussions and promptly submit their recommendations.

The Ministry of Finance was directed to ensure adequate funding, and a call for genuine collective bargaining was made, emphasising the importance of adhering to contracts.

President Bola Tinubu, through the Vice President, inaugurated the tripartite committee on the national minimum wage, urging members to consult widely and consider the ability of all parties to sustain the proposed new wage.

The committee, representing federal and state governments, the private sector, and organised labour, is mandated to propose a new national minimum wage for the country.

Tinubu emphasised the importance of timely completion of the committee's assignment to ensure sustainability across all government tiers.

Tinubu said:

“The committee is anticipated to conclude its deliberations promptly and submit its report and recommendations.

“This timely submission is crucial to initiate the necessary processes for implementing a new National Minimum Wage."

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Organised labour proposes $300 minimum wage for Nigerian workers

Legit.ng earlier reported that organised labour has drawn the first approach to a raise in Nigerians' national minimum wage.

A living wage of $300 has been proposed by organised labour for Nigerian workers nationwide.

This comes after the presidency, on Tuesday, January 30, inaugurated a 37-member committee to review the current minimum wage.

Source: Legit.ng