Indications have emerged that the organised labour is prepared to lower its demand for N1m minimum wage for workers in the country in line with realities on the ground. The shift in position will likely be communicated to the Federal Government during the second meeting of the tripartite committee on the minimum wage on Monday and Tuesday.

Sunday PUNCH gathered that the meeting would enhance deliberations between all parties involved in negotiations to allow for the announcement of a new minimum wage on or before April 1 following the expiration of the current N30,000 minimum wage as provided by the law.

President Bola Tinubu, through his deputy, Kashim Shettima, had on January 30, 2024, inaugurated a 37-member panel on the new minimum wage at the Council Chamber of the State House in Abuja.

With its membership cutting across the federal and state governments, the private sector, and organised labour, the panel is to recommend a new national minimum wage for the country

 his opening address at the inauguration, Shettima urged members to “speedily” arrive at a resolution and submit a report early as the current N30,000 minimum wage expires at the end of next month.

“The timely submission (of the report) is crucial to ensure the emergence of a new minimum wage,” Shettima said.

He also urged good faith in collective bargaining, emphasising contract adherence and encouraging consultations outside the committee

In May 2017, the House of Representatives moved to amend the National Minimum Wage Act for a compulsory review of workers’ remuneration every five years.

The Minimum Wage Act of 2019 signed by former President Muhammadu Buhari empowers the committee to deliberate and come up with an agreed wage, which will be eventually ratified by the National Assembly after due legislative scrutiny.

Buhari had also signed the Minimum Wage Act that approved N30,000 for both federal and state workers in the same year.

However, President Bola Tinubu announced the discontinuance of fuel subsidy on May 29, 2023, which triggered a sharp rise in the general cost of living.

Although the administration approved an additional N35,000 wage award for six months starting from September 2023 to alleviate the impact of the subsidy removal, the organised labour maintained that this was only a provisional solution and called for a complete review of the minimum wage.

Chairing the panel is a former Head of the Civil Service of the Federation, Bukar Aji, who at the inauguration affirmed that its members would come up with a “fair, practical, implementable and sustainable” minimum wage.

The inauguration of the committee follows months of agitation from the organised labour, which expressed concerns over the Federal Government’s failure to inaugurate the new national minimum wage committee as promised during negotiations last October.

On the government’s side, members include the Minister of State, Labour and Employment, Nkeiruka Onyejeocha, representing the Minister of Labour and Employment; Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, who was represented by the ministry’s Permanent Secretary, Mrs Lydia Jafiya.

Others are the Minister of Budget Economic Planning, Atiku Bagudu; Head of the Civil Service of the Federation, Dr Yemi Esan; Permanent Secretary, GSO OSGF, Dr Nnamdi Mbaeri; and Chairman/CEO, NSIWC – member/Secretary, Ekpo Nta.

Representing the Nigerian Governors’ Forum are Mohammed Bago of Niger State (North-Central); Senator Bala Mohammed, Bauchi State (North-East); Umar Dikko Radda, Katsina State, (North-West); Prof Chukwuma Soludo, Anambra State (South-East); Senator Ademola Adeleke, Osun State (South-West); and Otu Bassey, Cross River State (South-South).

From the Nigeria Employers’ Consultative Association, Adewale-Smatt Oyerinde, Director-General, NECA; Mr Chuma Nwankwo and Mr Thompson Akpabio; representing the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture are Asiwaju Michael Olawale-Cole, National President; Ahmed Rabiu, National Vice-President; and Chief Humphrey Ngonadi, National Life President.

Representatives of the National Association of Small and Medium Enterprises are Dr Abdulrashid Yerima, President and Chairman of Council; Theophilus Okwuchukwu, private sector representative; Dr Muhammed Nura Bello, Zonal Vice-President, North-West; and also from the Manufacturers Association of Nigeria are Mrs Grace Omo-Lamai, Human Resource Director, Nigerian Breweries; Segun Ajayi-Kadir, Director-General, MAN; Lady Ada Chukwudozie, Managing Director, Dozzy Oil and Gas Limited.

From the organised labour are Joe Ajaero, President, Nigeria Labour Congress; Emmanuel Ugboaja; Prince Adeyanju Adewale; Ambali Akeem; Benjamin Anthony and Prof Theophilus Ndukuba.

From the Trade Union Congress of Nigeria are Festus Osifo, President, TUC; Tommy Etim Okon, Deputy President I; Kayode Surajudeen Alakija, Deputy President II; Jimoh Oyibo, Deputy President III; Nuhu Toro, Secretary-General; and Hafusatu Shuaib, Chairperson Women Comm

Speaking with our correspondent on the deliberations of the committee following the announcement by the President of the NLC, Joe Ajaero, that rising inflation in the country might push the organised labour to demand N1m as minimum wage, a representative of the NLC, who is also a member of the committee, Akeem Ambali, said one of the principles of collective bargaining allowed all parties to look into all factors before an amount would be agreed on.

“The principle of collective bargaining allows compromise once the parties look at all factors to ensure an agreeable amount is reached,” he stated.

Speaking on the next sitting of the committee, Ambali said, “The second meeting of the minimum wage committee has been slated for Monday and Tuesday.

“On the timeline of March for the expiration of the current minimum wage, we hope that the committee, the Presidency, and the National Assembly will expedite action to ensure that the new Minimum Wage Act would have come to replace the old one by April 1, 2024.”

Ambali also expressed shock at the N500m approved by the President for the committee.

A leaked memo had disclosed the request for N1.8bn for the inauguration of the committee. The memo, signed by the Secretary to the Government of the Federation, Senator George Akume, and dated January 18, 2024, was addressed to President Bola Tinubu.

It underscored the committee’s need for substantial funds to kick-start its operations. The document sought approval for the release of N1bn, with the inauguration set for January 26, 2024. The memo also emphasized the legal requirement to establish a new minimum wage by April 1, 2023.