The minister said the agreement was reached at a meeting between President Bola Tinubu and the leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on Thursday in Abuja.

“We are happy to announce today (Thursday) 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 ₦70,000,” an elated Idris told State House correspondents.

NLC President Joe Ajaero, TUC boss Festus Osifo, Labour Minister Nkiruka Onyejeocha, and other officials from both sides flanked the minister.

Ajaero confirmed that ₦70,000 was where they were on the issue of the minimum wage.

He also said that part of the discussion was that the minimum wage would no longer wait till after five years to be reviewed. According to him, the agreement was that the minimum wage would now be reviewed every three years.

Ajaero said the Organised Labour would consult with their members on the ₦70,000 benchmark.

“We were here last week. And we are here now. What they have announced in terms of the amount of ₦70,000 happens to be where we are now. But the thing about it is that we will not wait for another five years to come and agree,” Ajaero said.

On her part, Onyejeocha said Tinubu had also directed the Ministers of Finance and Budget, Wale Edun and Atiku Bagudu, respectively, to work out modalities on how to settle the issues with the Senior Staff Association of Nigerian Universities (SSANU) and the Non-Academic Staff Union of Educational and Associated Institutions (NASU).

The “agreement” between the two sides followed a series of talks between labour leaders and the President in the last few weeks after months of failed talks between labour organs and a tripartite committee on minimum wage constituted by the President in January.

The committee, which comprised state and federal governments and the Organised Private Sector, had proposed ₦62,000 while labour insisted on ₦250,000 as the new minimum wage for workers who currently earn ₦30,000 as minimum wage.

Labour had said ₦30,000 was unsustainable for any worker going by the economic vagaries of inflation and high cost of living which followed the removal of petrol subsidy by the President.

Last Thursday, the President met with labour leaders and called for realistic expectations as regards minimum wage. “You have to cut your coat according to available cloth. Before we can finalise the minimum wage process, we have to look at the structure,” Tinubu had said.

President Tinubu will meet with organized Labour on the same day to finalize the amount that will be proposed to the National Assembly.

Idris mentioned that the Federal Executive Council discussed the national minimum wage and will invite organized Labour for a meeting this week.

“The President is not against increasing the national minimum wage but is cautious to avoid triggering severe inflation,” Idris stated.

Speaking at the 7th Quadrennial Delegates Conference of the Association of Senior Civil Servants of Nigeria (ASCSN) in Ado-Ekiti on Wednesday, he emphasized that the NGF supports fiscal federalism, enabling individual states to pay wages based on their financial capacity.

Oyebanji explained, “The NGF is not against the living wage; no Governor is against the minimum wage. However, it must reflect fiscal federalism, ability, and capacity to pay. No Governor wants to retrench. If there is a minimum wage today without a concurrent increase in state earnings, no state can pay. We are committed to giving you a living wage, but we must consider what each state can afford.”

He urged Ekiti State workers to embrace agriculture, noting that his administration had cleared over 2,000 hectares of land for free allocation to interested residents.

“My appeal to civil servants is to form cooperative societies and approach the Ministry of Agriculture for support. We are clearing land free of charge, providing inputs, and committing to purchasing produce from you. As of today, we have cleared more than 2,000 hectares across Ekiti State,” he said.

Governor Oyebanji highlighted the crucial role civil servants play in the state’s administration and development, particularly in achieving the Six Pillars of his administration.

He attributed the administration’s achievements to the efficiency and effectiveness of the workers, underscoring their importance as stakeholders in the state’s growth.

The Federal Executive Council delayed a decision on the new minimum wage to allow further consultations among federal and state governments, the private sector, and labor unions.

President Tinubu recently met with governors at the National Economic Council, but the meeting did not address the minimum wage issue.

Meanwhile, the Southern Governors’ Forum suggested that each state negotiate its own minimum wage with its workforce.

Labor unions criticized the Nigeria Governors’ Forum (NGF) for their dominant role in wage negotiations. An NGF report highlighted that implementing a new minimum wage could bankrupt states due to increased recurrent expenditures.

The report revealed that several states were already in deficit in 2022 and predicted that a 50% rise in recurrent expenditure would push 13 states into deficit.

The tripartite committee recommended a minimum wage of N62,000, a significant increase from the current N30,000. Only a few states, such as Anambra, Bayelsa, and Lagos, might maintain positive net revenues with this increase.

The NGF report also detailed the financial status of various states, highlighting high recurrent expenditures and low internally generated revenues (IGR) in many states. For instance, Lagos had the highest total revenue in 2022, while Kebbi had the lowest. Some states, like Zamfara and Taraba, recorded particularly poor IGR.

Reports indicate that 15 states have not implemented the current N30,000 minimum wage, despite its legal status since 2019.

However, all 36 states significantly increased their personnel costs and overall revenue from 2021 to 2022, according to BudgiT’s ‘The States of States Report 2023’.

This proposal comes amid broader national efforts to resolve the ongoing minimum wage crisis.

During the Nigerian Governors’ Forum (NGF) meeting on Wednesday night, governors emphasized their commitment to finding a mutually agreeable solution to the minimum wage dispute.

Despite the presence of President Bola Tinubu at the typically Vice President-led National Economic Council (NEC) meeting, no statements were made regarding the wage issue.

Organised Labour has voiced concerns about rising restiveness among workers in both the public and private sectors due to delays in finalizing the new minimum wage.

They warned that workers are pressuring labor leaders to initiate industrial action to expedite the process.

Governors Push for Flexibility in Wage Determination

The Southern Governors’ Forum, in a 16-point communiqué issued on Thursday, advocated for state-specific wage negotiations with labor unions, reflecting local cost-of-living variations. This discussion also touched on themes of fiscal federalism and devolution of powers.

Following a late-night NGF meeting in Abuja, which included governors and deputy governors from multiple states, the forum reiterated their dedication to the ongoing process.

The NGF, chaired by Kwara State Governor AbdulRahman AbdulRazaq, committed to continued stakeholder engagement to ensure fair wage adjustments.

In January, President Tinubu established a tripartite committee involving organized labor, federal and state government representatives, and the Organised Private Sector (OPS) to negotiate a new minimum wage.

However, the committee’s inability to reach an agreement led to an indefinite strike by labor unions on June 3, 2024, causing significant disruptions across various sectors.

Background on Minimum Wage Negotiations

The current minimum wage of ₦30,000 has been deemed insufficient by labor unions, who demand a more economically realistic figure in light of inflation and recent economic policies, including petrol subsidy removal and forex unification.

Labor’s initial demand for a minimum wage of ₦494,000 was reduced to ₦250,000, while the government’s counter-offer was increased from ₦60,000 to ₦62,000.

Following assurances from President Tinubu of a living wage above ₦60,000, labor unions suspended their strike on June 4, 2024.

Both labor and government representatives resumed negotiations, yet failed to finalize an agreement by June 7, 2024.

Reports from both sides were submitted to the President, who committed to wider consultations and sending an executive bill to the National Assembly for the new minimum wage legislation.

In his Democracy Day speech on June 12, 2024, President Tinubu reaffirmed his commitment to presenting an executive bill on the new minimum wage to the National Assembly soon.

The President continues to consult on the matter, with a decision on the ₦62,000 government proposal and the ₦250,000 labor demand pending.

The discussions took place during the 141st meeting of the National Economic Council (NEC), held in the Council Chamber of the State House, Abuja.

Vice President Shettima chaired the meeting with state governors, deputy governors, and ministers before President Tinubu’s arrival.

This high-level meeting occurred just two days after the Federal Executive Council (FEC) deferred a minimum wage review memo to allow for further consultations.

On the preceding Wednesday, governors under the Nigeria Governors’ Forum (NGF) met in Abuja, assuring Nigerians that ongoing negotiations involving the government, private sector, and organized labour would lead to improved wages.

In his Democracy Day address on June 12, 2024, President Tinubu pledged that an executive bill on the new national minimum wage would be presented to the National Assembly for approval soon.

The President is expected to decide on the proposed ₦62,000 minimum wage by the government and private sector, compared to Labour’s ₦250,000 demand.

Prof. Muhammad Pate, the Coordinating Minister of Health and Social Welfare, made this statement in an interview on Channels Television on Wednesday.

Despite these constraints, Prof. Pate emphasized the government’s dedication to enhancing the welfare and wages of doctors, nurses, and other health professionals.

He said, “We appreciate them. Some have chosen to go abroad for training, and we have approved this with the expectation that they will return after their training. We are also expanding the training of those who remain and are working on improving their conditions.”

He highlighted ongoing efforts in wage review, noting that submissions have been made to the Salary Incomes and Wages Commission to adjust the remuneration for the health workforce.

This statement comes in the wake of the Federal Executive Council (FEC) postponing the review of the minimum wage to allow for further consultations. On June 12, 2024, President Bola Tinubu, in his Democracy Day address, assured the Organised Labour of an upcoming Executive Bill to establish a new national minimum wage.

The President is expected to make a decision regarding the proposed N62,000 minimum wage from the government and private sector side, and the N250,000 demand from Labour.

In an interview with the News Agency of Nigeria (NAN) on Monday in Abuja, Onyeka revealed that despite the legal mandate of the ₦30,000 minimum wage enacted in 2019, 15 states have yet to implement it.

He said while workers are anxiously awaiting a new minimum wage to be passed into law, 15 states are yet to implement the N30,000 wage enacted in 2019.

According to him, despite the increased revenue accruable to states after the fuel subsidy removal and the attendant hardships brought about by the hike in pump price, the states are still recalcitrant in paying their workers the minimum wage.

Onyeka identified the states yet to implement the minimum wage, in defiance of the 2019 Act, as Abia, Bayelsa, Delta, Enugu, Nasarawa, Adamawa, Gombe, Niger, Borno, Sokoto, Anambra, Imo, Benue, Taraba, and Zamfara.

“A state governor who does not believe in the sanctity of the laws will have a high proclivity to disobeying them.

“If you examine the history of some of these governors and their handlers, you will find a preponderance of those who came to power by breaking the laws.

“Is it now that they will obey the national minimum wage act?” he asked.

The labour leader said many governors were unwilling to pay civil servants their salaries because they see state resources as theirs and are, therefore, not willing to share with the workers who create the wealth.

Onyeka added that fiscal indiscipline in many states is legendary, and the personal greed of some governors resulted in their appropriating state resources into their private pockets.

He reiterated the need to cut the cost of governance at all levels and end wastages.

He identified the measures to include a reduction in the number of political appointees to reduce overhead, as well as a reduction in the number of logistics, official, and operational vehicles.

Onyeka said the salaries and allowances of elected and appointed officials of the three arms of government should be in sync with what is received by civil servants.

He said the government at all levels should streamline procurement processes to ensure integrity, accountability, fiscal discipline, and transparency.

Speaking on Monday in Lafia, Nasarawa State, ALGON National President Aminu Muazu-Maifata revealed that local councils receive just over 18% of the monthly allocation from the Federation Account.

Despite the Nigerian government’s proposal for a N62,000 minimum wage, in contrast to the N250,000 demanded by organized labor, Muazu-Maifata emphasized the financial strain on local councils.

He noted that besides wages, councils must also fund healthcare, education, security, infrastructure, and empowerment programs.

Muazu-Maifata called for increased allocations to local governments and highlighted the need to prioritize security and attract developmental interventions.

He also stressed the importance of unity among LGA Chairmen to enhance governance and improve grassroots living conditions.

In a statement issued on Friday by NGF’s Director of Media and Public Affairs, Halimah Ahmed, the governors argued that the proposed wage is excessively high and impractical.

The NGF emphasized that if the N60,000 minimum wage is implemented, many states would have to allocate their entire Federal Account Allocation Committee (FAAC) funds to salaries, leaving no resources for development projects.

“The Nigeria Governors’ Forum agrees that a new minimum wage is due and sympathizes with labour unions’ push for higher wages,” the statement read.

“However, the Forum urges consideration of the consequential adjustments across all cadres, including pensioners. Any agreement must be sustainable and realistic.”

The NGF stressed that the proposed wage would force many states to spend all their FAAC allocations on salaries, with some needing to borrow to meet payroll obligations.

This, they warned, is not in the collective interest of the country, including the workers themselves.

The NGF called on all parties involved in the negotiation, especially labour unions, to consider all socioeconomic factors and reach a sustainable agreement.

Meanwhile, organized labour groups, including the Trade Union Congress (TUC) and the Nigeria Labour Congress (NLC), have vowed to reject any minimal increase below N60,000.

The unions had suspended their strike after the Federal Government assured them that President Bola Tinubu is committed to a minimum wage higher than the initial offer.

This development comes less than 24 hours after the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, presented the cost implications of a new minimum wage to the President, prompting the governors to agree that a new minimum wage is indeed due.