Minimum wage: Tinubu, Labour meet Thursday, LGs demand more allocation
President Bola Tinubu will again meet with labour leaders on Thursday to reach a consensus on a new minimum wage just as the Association of Local Government of Nigeria demanded a new revenue formula in favour of the 774 local government areas in the country.
The Minister of Information and National Orientation, Mohammed Idris, told journalists after the 15th Federal Executive Council meeting at the State House, Abuja, on Monday, that Tinubu would hold a follow-up meeting with the labour leaders in continuation of his consultation with the stakeholders.
An amendment bill to the budget would thereafter be transmitted to the National Assembly after a consensus had been reached on a new minimum wage.
Last Thursday, the President and labour leaders held a meeting but no conclusive figure on a new minimum wage was reached and the session was adjourned until Thursday.
The Tripartite Committee on the New National Minimum Wage had submitted two separate figures to the President following a disagreement among the stakeholders.
While the government team and the organised private sector proposed N62,000, Organised Labour demanded N250,000.
On receiving the committee’s report, the President asked for more time to have a dialogue with the relevant stakeholders to harmonise the figures before transmitting an executive bill to the National Assembly.
Briefing correspondents at the end of the FEC meeting, the information minister said, “The government has directed the Ministry of Budget to also come up with additional support for the 2024 Budget so that any differential or any gaps that will exist in terms of what existed before the 2024 Budget was approved and the Supplementary Budget and also what the requirement is for now.
“Now, you are also aware that last week, the Nigeria Labour Congress met with Mr President. He had met the organised private sector, he had also met the sub-nationals after the tripartite committee on labour submitted its report, in order to ensure that there is a thorough analysis of the situation, so the government will come up with a minimum wage that works for all Nigerians, the Federal Government, the sub-nationals and organized private sector. That was also discussed today.
“So the government is working round the clock to ensure that it comes up with a minimum wage; like I said, that works for all Nigerians at the end of the day. This of course will be submitted to the National Assembly so that it can have legislative backing,” he said.
Idris explained that Tinubu was open to more consultations with the Organised Labour and its affiliates.
“We expect that meeting to hold this coming Thursday. Recall that this was already what the labour unions requested during their meeting with Mr President last week.
“So the President is in agreement, he knows that the Labour wants to quickly finalise this issue of minimum wage and the government is also anxious to put the issue of minimum wage behind it.
“So, it is expected that the Nigeria Labour Congress, Trade Union Congress and all their affiliates, as requested by them last week, will meet the President on Thursday and after which the President will now transmit whatever the final agreements or what his views are on the tripartite committee’s report to the National Assembly for legislation,” Idris explained.
However, the government’s spokesperson said the council did not discuss the minimum wage figure as consultations are underway.
“The President and the Federal Executive Council and the Federal Government are not in opposition to the concept of wage increase.
“The issue has been a wage increase that we can defend, meaning a wage increase that will not lead to inflation, a wage increase that not just the Federal Government, but the sub-nationals and the organised private sector, can pay and something that is also sustainable.
“The President also mentioned that instead of waiting for a whole five years before wages are reviewed, we can actually look at these wages between two to three years. So, the discussion was not around the figure itself, it’s about the general parameters and the general principle of the wage increase itself,” he clarified.
The minister argued that the planned budget amendment was necessary to accommodate new fiscal developments, including the impending new national minimum wage.
Responding to concerns that Nigeria is running multiple budgets, Idris said, “It is not the case and that is why the Minister of Budget has been asked to submit this additional information to the National Assembly to make it take an informed position on most of these.
“Of course, it is the tradition of the executive to allow the National Assembly to unveil some of these things and that is why we don’t want to go into further details.
“I’m sure the National Assembly, once it gets budget…they will do that. The executive is always respectful of the tradition of the National Assembly in terms of their protocol.”
LGs demand more allocations
Meanwhile, the National President of ALGON, Aminu Mu’azu-Maifata, has called for an increase in the monthly allocation to the 774 LGAs to enable them to pay the new minimum wage when it is finally passed into law.
Speaking at a press briefing in Lafia, on Monday, against the backdrop of the Supreme Court judgment granting financial autonomy to LGAs, he said, “Once the new minimum wage is enacted by the National Assembly and becomes a law, each and every council chairman must obey.
‘’But how to obey such a law is what we will look into. By sourcing funds to pay salaries, we are also going to find ways to attract and harmonise resources so that we will not default.’’
Continuing, Mu’azu-Maifata noted, “On the issue of N62,000, after the tripartite committee submission, I clearly stated it as a member of that committee, I told them clearly that unless and until the revenue sharing formula is being reviewed to favour local government councils, anything short of that, no council in the country would be able to shoulder the minimum wage.
“But I have the conviction that with the way President Bola Tinubu has a passion for the development and democratisation of the local government councils across the country, something is going to be done with the sharing formula which would release more funds to the local government councils. So, before the final decision is taken on the minimum wage, we will know how to handle the matter.’’
He called on the 774 council chairmen to use the opportunity of the local government autonomy to positively touch the lives of the people at the grassroots.
The ALGON president explained that the autonomy granted to the LGAs would enhance democracy at the grassroots level across the country and empower local authorities to make decisions that would have positive impacts on the lives of their people.
He commended the President on his efforts to ensure that local government councils functioned properly as enshrined in the Constitution.
Mu’azu-Maifata , who is also the Chairman of Lafia LGA in Nasarawa State, said all council chairmen across the country would do everything within their powers to deliver the dividends of democracy to their people.
He stated, “Before the pronouncement of the Supreme Court, the autonomy has been there, clearly spelt out in the constitution, but the players were not allowing it to enjoy the light of the day.
“But with this pronouncement, we know that everybody has keyed into it. Nigerians are now waiting to see that the pronouncement of the Supreme Court becomes a reality.
“So, I want to call on all the council chairmen in the 774 LGAs of the country to ensure that you give your people the best of leadership. You need to deploy all the necessary expertise at your disposal to see that you deliver the dividends of democracy to the people.
“As council chairmen, we have high expectations from the Federal Government, the governors and all Nigerians, so we should not abuse these positive expectations, most especially from President Bola Tinubu, who has a passion to see that local government councils in the country are functioning, as stated in the Constitution of the Federal Republic of Nigeria.”
He urged his colleagues to pay more attention to the payment of salaries; building and rehabilitation of basic healthcare facilities; supporting schools at the grassroots to function properly; and ensuring adequate security at the grassroots, among others, to make life more meaningful for the people at the grassroots level.
Mu’azu-Maifata further called on all relevant stakeholders, including local government officials and the public to support the Supreme Court judgment and work together towards harnessing its positive impacts for the benefit of the citizens.
