President Bola Tinubu has assured organized labour that an executive bill for a new national minimum wage will soon be sent to the National Assembly for approval.
During his second Democracy Day speech on June 12, 2024, Tinubu stated, “In this spirit, we have negotiated in good faith with organized labour on a new national minimum wage.
We will soon send an executive bill to the National Assembly to formalize what has been agreed upon as law for the next five years or less.”
Tinubu emphasized that during the national strike by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on June 3, 2024, no labour leaders were arrested or threatened.
Instead, they were invited to negotiate a resolution, highlighting the democratic values of reasoned discussion and principled compromise.
Acknowledging the nation’s economic challenges, Tinubu empathized with Nigerians and promised necessary economic reforms.
“The reforms we have initiated are intended to create a stronger, better foundation for future growth.
These reforms have caused hardship, but they are essential to ensure economic opportunity, fair pay, and compensation for all.”
The Minimum Wage Act of 2019, which set ₦30,000 as the minimum wage, expired in April 2024.
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A new minimum wage act is due, reviewed every five years to meet contemporary economic demands.
In January, President Tinubu established a Tripartite Committee to negotiate a new minimum wage, comprising organized labor, and representatives from federal and state governments, as well as the organized private sector.
Despite extensive negotiations, the committee failed to agree on a new minimum wage, leading to an indefinite strike by labour unions on June 3, 2024.
The strike paralyzed businesses nationwide, affecting airports, hospitals, the national grid, banks, and legislative complexes.
Labour unions argued that the current minimum wage of ₦30,000 is insufficient given inflationary pressures and the impact of recent government policies, such as the removal of the petrol subsidy and the unification of forex windows.
The strike was temporarily relaxed on June 4, 2024, after President Tinubu assured a minimum wage above ₦60,000.
Subsequent negotiations resumed, but an agreement remained elusive.
While labour reduced their demand from ₦494,000 to ₦250,000, the government increased its offer from ₦60,000 to ₦62,000.
Both sides have submitted their reports to the President, who is expected to decide and send an executive bill to the National Assembly to enact the new minimum wage into law.
