The Tripartite Committee on National Minimum Wage has urged organized labor to reconsider its demand for a monthly minimum wage of N250,000. Committee Chairman Alhaji Goni Aji made the appeal on Sunday in Abuja, citing economic considerations and non-monetary incentives provided by the Federal Government….CLICK HERE TO CONTINUE READING>>

Government Incentives

According to Aji, the Federal Government has offered various incentives to alleviate the financial burden on workers, including:

* N35,000 wage award for federal workers
* N100 billion for gas-powered buses
* N125 billion conditional grant
* Financial inclusion for small and medium scale enterprises
* N25,000 shared among 15 million households
* N185 billion palliatives loans to states

Additionally, the government has released 42,000 metric tonnes of grains from strategic reserves and distributed 60,000 metric tonnes of rice to millers.

Employee Benefits

Aji also highlighted employee benefits implemented by the government, such as:

* 25% and 35% salary increase for federal workers
* 90% subsidy on health costs
* Commissioning of a light rail to reduce transportation costs

Economic Impact

The committee chairman urged labor unions to consider the potential economic impact of a massive wage increase. He noted that many businesses are already closing down, and a further increase in labor costs could lead to widespread job losses.

Negotiation and Impasse

Organized labor embarked on an indefinite strike on June 3, demanding a minimum wage increase. The unions initially sought N615,000, later reducing their demand to N494,000 and then N250,000. However, the government and private sector offered lower amounts, all of which were rejected by labor.

After a brief suspension of the strike, talks resumed but failed to reach an agreement. Labor maintained their demand for N250,000, while the government offered N62,000.

Next Steps

The President is expected to make a decision and submit an executive bill to the National Assembly to pass a new minimum wage bill.

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