Minimum Wage: Be Guided By Social Justice, Complete Task in Time, Tinubu Tells Tripartite Committee

He mandated governors and ministers to attend committee meetings or send representatives.

President Bola Tinubu has inaugurated a 37-man Tripartite National Minimum Wage Committee, with a directive to its members to ensure their decisions are firmly rooted in social justice and equity. 

In order to guarantee sustainability by all tiers of government, the President said the committee needs to pay attention to the ability of all parties to pay the new wage, while also asking the committee members to ensure timely completion of their assignment. 

The President, who was represented by Vice President Kashim Shettima, stated this on Tuesday while inaugurating the tripartite committee at the Council Chambers of the State House, Abuja. 

President Tinubu told the committee members: “Our objective should be to surpass the basic Social Protection Floor for all Nigerian workers, considering the sustainable payment capacity of each tier of government and other employers or businesses. 

“I express this viewpoint because the minimum wage represents the least amount of compensation an employee should receive for their labor, and as such, it should be rooted in social justice and equity. I hope that the results of your deliberations will be consensual and acceptable to all parties involved”.

In his address before the inauguration of the committee, President Tinubu urged members to “speedily” arrive at a resolution and submit their reports early as the current N30, 000 minimum wage expires at the end of March 2024.

He urged them to take attendance to meeting seriously, adding that the minimum wage must be based on equity and social justice.

He also encouraged them to consult outside the committee and come up with a fair, practical, implementable and sustainable minimum wage.

The President in his address titled: “Social Justice and Equity: Tripartite Agenda for Minimum Wage”, said the gathering was a reaffirmation of the promise to improve the welfare of Nigerian workers and, by extension, the entire nation. 

He said, “The labor force stands as the cornerstone of the progress of every nation, and ours has been the enduring engine of our pursuit of development.”

On the importance of the gathering, he said, “Our sense of duty today thrives on both our sensitivity to the conditions of the Nigerian worker and the impending expiration of the last Minimum Wage Instrument in a few months. 

“It is in recognition of the need to ensure a fair and decent living wage, and in compliance with the Act, that the Federal Government has set in motion necessary mechanisms to assemble this tripartite Committee to chart a future that aligns with our collective interests.

“While the decisions we have taken to save the economy are inevitable, we are not unaware of the short-term consequences. We believe that government is a continuum, and, as such, we have intervened in the systemic delays that undermined our economic growth. 

“Since the removal of the subsidy, various committees have been established to examine and make recommendations to the government on measures to cushion the envisaged painful effects of the increase on workers and the Nigerian populace at large. I am pleased to share that action has since commenced on the implementation of the outcome of those agreements and initiatives.”

 President Tinubu also said, “We have identified the need for the review of the National Minimum Wage and to consider a minimum wage level that can alleviate the nation. 

“It gladdens my heart that the recommendation is being acted upon today, and we can all acknowledge that this is in line with our democratic process and adherence to the rule of law. I express my gratitude to all those who contributed to that endeavor.

“The issue of a National Minimum Wage for the Federation falls within the Exclusive Legislative List of the 1999 Constitution of the Federal Republic of Nigeria (as amended). Therefore, our objective should be to surpass the basic Social Protection Floor for all Nigerian workers, considering the sustainable payment capacity of each tier of government and other employers or businesses.

“I express this viewpoint because the minimum wage represents the least amount of compensation an employee should receive for their labor, and as such, it should be rooted in social justice and equity. I hope that the results of your deliberations will be consensual and acceptable to all parties involved.

“The government’s decision, following the consideration of your final recommendation, will be presented as an Executive Bill to the National Assembly. This bill, enriched by the contributions of state governments and private sector employers, will undergo thorough legislative scrutiny before being passed into law.

“I am hopeful that the Committee will employ the principles of full consultation with Social Partners and their direct participation, considering the core provisions of the International Labour Organization Minimum Wage Fixing Convention No. 131 and Minimum Wage Fixing Machinery Convention No. 26, both of which have been ratified by Nigeria.”

 He advised that the conditions of genuine Social Dialogue should prevail in the spirit of Tripartism and Collective Bargaining Agreements, encouraging them “to engage in collective bargaining in good faith, recognize each other, and maintain a spirit of give and take. 

“Additionally, please continue your consultations outside the Committee as you work towards recommending a new National Minimum Wage.

“The Committee is anticipated to conclude its deliberations promptly and submit its report and recommendations. This timely submission is crucial to initiate the necessary processes for implementing a new National Minimum Wage.”

The President reaffirmed his administration’s promise to improve the welfare of Nigerian workers and, by extension, the entire nation, saying “the labor force stands as the cornerstone of the progress of every nation, and ours has been the enduring engine of our pursuit of development.” 

Underscoring the significance of the assignment as reflected in the composition of the tripartite committee, President Tinubu urged committee members to take their new task with all seriousness, even as he directed the committee to employ the principles of full consultation with social partners in all of its deliberations. 

Accordingly, he directed that state Governors, Ministers and the Head of the Civil Service of the Federation who are members must personally attend the committee meetings, and in the event where they are unavoidably absent, their deputies, commissioners and Permanent Secretaries should represent them. 

His words: “Recognizing the significance of this initiative and to ensure a substantial engagement, I hereby direct that Ministers and the Head of the Civil Service of the Federation should personally attend the meeting. In their unavoidable absence, their Permanent Secretaries should represent them. 

“Similarly, Governors are expected to attend in person or be represented by their deputies or commissioners where necessary. I urge you to consider the issue of a National Minimum Wage and all related matters with thoroughness and concern, keeping in mind not only the welfare of our workforce but also the impact on the country’s economy”.

On the need for prompt completion of their assignment, the President noted that “timely submission is crucial to initiate the necessary processes for implementing a new National Minimum Wage.” 

He further stressed that “government’s decision, following the consideration of your final recommendation, will be presented as an Executive Bill to the National Assembly. 

“This bill, enriched by the contributions of state governments and private sector employers, will undergo thorough legislative scrutiny before being passed into law,” President Tinubu further said. 

Earlier in his opening remarks, Secretary to Government of the Federation, Senator George Akume, urged the committee to give its best, noting that the task before it carries the hopes and aspirations of millions of Nigerian workers. 

According to him, the inauguration of the committee to come up with a new national minimum wage is in fulfilment of the promise of the Tinubu administration to embark on a comprehensive review of the minimum wage for the average Nigerian worker. 

He said, “The past year in the life of our nation has been marked by significant economic challenges The removal of fuel subsidy, while a necessary step towards long-term fiscal sustainability, has undoubtedly imposed temporary hardships on many In recognition of these challenges, the government made a commitment to cushion the effects on workers through a wage award, being implemented currently. 

“Today, we take another crucial step in fulfilling that promise by embarking on a comprehensive review of the national minimum wage.

“The Minimum Wage Act of 2019 empowers this Tripartite Committee, composed of representatives of government, organized labor, and employers, to engage in open and constructive dialogue to arrive at a fair and sustainable minimum wage. 

“This process is not merely about numbers, it is about recognizing the dignity of work and ensuring that all Nigerians have the opportunity to earn a living wage that allows them to meet their basic needs and participate meaningfully in our society. In return, the workforce, whether public or private must of necessity, ramp up productivity, in order to sustain whatever would be the outcome of future engagements. 

“I urge you to approach this Patriotism. Task with the spirit of commitment, collaboration, and flexibility and Patriotism. Please eschew individual interests and focus on the common good for our dear nation.”

Also speaking, Chairman of the Tripartite Committee and a former Head of Service of the Federation, Alhaji Bukar Goni Aji, assured the President that the committee will do justice to the task assigned to it. 

He said: “We shall, by God’s grace, carry out extensive consultations with key stakeholders to arrive at a new minimum wage that is fair, practical and implementable”.

Speaking with newsmen after the inauguration, Governor Mohammed Umar Bago of Niger state ruled out any challenges by the sub nationals as they are already carried along by the government at the center.

According to him: “We don’t want to preempt the outcome of this meeting, but you need to understand that the sub-nationals also have challenges and that the federal government, in its own wisdom, has brought the sub-nationals into perspective and this discussion will be done together with the sub-national, so I’m not sure we’re going to foresee any challenge”.

He added that Governors will not rule out the possibility of sourcing  for other means of funding the new minimum wage saying “we are looking for alternative ways of funding and we’re assured that with the backward integration in the economy, a lot of us will be able to stand tall to this challenge”.

On his part, the Life Vice President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr Humphrey Ngonadi, said the proposed new minimum wage will be meaningless if government refuses to address the rising cost of commodities prices in the market. 

His words: “I thank God for this initiative that government is taking at this particular place, but I’m still being worried. We may remember some time long ago there was an Udoji Award and that was the first time salaries of workers were increased and immediately after the increment the commodity in the market ran up to meet. 

“So while we are talking about minimum wage, I think the government, on its own side, has to think on how to bring down the prices of commodities in the market.

“If a worker is paid N1 million as the minimum wage and a bag of rice is N900, 000, the N1 million still has no meaning. So what I think is while we are thinking of minimum wage, to hike the salary of the worker, the government, on its own side, has to think of how that money will have value.

“Having value is if a bag of rice that was N8000 yesterday is now N50, 000 and you increase the salary of the workers and the price or price will be N200, 000, the salary increase has no value. 

“So I think the government is now going in the right direction, also, while we increase the salary of the workers, let government work on the prices of commodities to come down.

If the dollar will step down now, the prices of commodities will step down. My mind is going that way”.

On her part, Minister of state for Labour, Hon Nkeiruka Onyejocha said everything the committee will be doing must end before 1st of April, adding that there will be no delay.

“So, there’s no delay because it is something that is backed by the law and we must obey the law. Of course, we’re hopeful that we’re going to speed up the process because all of us know what the issues are. 

“Nobody is new in this, we’ve been talking about since last year. So I think I’m sure that we’re going to deliver based on speed and the expectations of Nigerians.”

Answering questions from reporters on whether the organized labor will insist on N200, 000 minimum wage, President of the Trade Union Congress (TUC), Comrade Festus Osofo, said as at the time the N200, 000 was proposed, the economy had not deteriorated to the level it was presently.

He said, “You could remember that, as at that time when we proposed that N200, 000 minimum wage, if you can recall, that even inflation had not gotten to where it is today. If you also recall as at when we were doing that proposal, the official exchange rate was somewhere around N450 to $1. 

“You could also recall as well that the parallel market rate as then was somewhere around 700 Naira to $1. But today, all these have been shattered. What that means is that we’ll go back to the drawing board. Because, Nigerian workers are battered as we speak, I mean the pay today literally is nothing. So the Nigeria workers as we speak now are facing through excruciating period. 

“In fact, we’ve had lots of minimum wage negotiations over the years, but this one will stand out. It will stand out because we have never seen a time like this in Nigeria. So this is a period where people are passing through pains. 

“In fact, the purchasing power of an average Nigerian worker and indeed the entire Nigeria masses has been eroded. So we are going to put on our thinking cap we are going to press to get the best for the working people of Nigeria.”

Also speaking, the Deputy President of the NLC, Prince Adeyanju Adewale, said what is expected is commitment from the government and the negotiators. 

According to him, “If the workers today are expectant, they want a robust minimum wage, I believe there won’t be any rigidity coming from the angle of the government. So I’m in line with what my TUC President said.”

The 37-man tripartite committee has six Governors, some cabinet Ministers, representatives of the organized labor and the private sector among its members. 

The Governors include Mohammed Bago of Niger State, representing the North Central; Bala Mohammed of Bauchi State, representing the North East; Dikko Radda of Katsina State, representing the North West; Charles Soludo of Anambra State, representing the South East who joined the inauguration ceremony virtually; Ademola Adeleke of Osun State, representing the South-West, and Otu Bassey of Cross River State, representing the South-South. 

The Ministers are those of Finance and Coordinating Minister of the Economy, Wale Edun; Budget and Economic Planning, Atiku Bagudu; the Head of the Civil Service of the Federation, Dr. (Mrs) Yemi Esan, and the Minister of State for Labour and Employment, Nkeiruka Onyejeocha.