As the Federal Government is working towards a new minimum wage, which is expected to commence very soon,workers across the country are full of expectations.TOBA AGBOOLA writes.

Given the hyper inflation in the country, there could be no better time for workers to ask for a wage increase.

Experts have supported the need for an increased minimum wage, saying the last few years had been unpleasant as real disposable incomes and the naira, among others, were affected.

Also, there have been continuous rise in food prices, due to factors like the weakening naira, climate change and escalating insecurity.

The National Bureau of Statistics (NBS) Consumer Price Index (CPI) stated that the accelerated headline inflation hit 28.2 per cent last November and food inflation 32.8 per cent.

The World Bank also said the country’s inflation eroded the N30,000 minimum wage by 55 per cent, thus reducing household expenditure.

There have been several minimum wage increases. In 1990, from N3,000, the minimum wage went up to N7,500; in 2010, it hit N18, 000 and from N18, 000 to N30, 000 in 2018.

The effect of the inflationary pressure cannot be be overemphasised as it shrunk the value of workers’ income, stretched budgets, and even forced many to cut down their purchases during the festive season.

True, the removal of subsidies on petroleum products further worsened the challenges faced by workers.

It unleashed severe pains and contributed to galloping inflation even as it increased inequality and poverty, experts added.

However, it was learnt the Federal Government is doing everything possible to ensure that the minimum wage is commensurate with the prevailing cost of living.

It was the President Bola Tinubu who first hint of a new minimum wage. Following the removal of fuel subsidy and unification of the naira, he, while delivering a speech last July, promised an upward review of the national minimum wage.

Again, the President, in his New Year’s message, assured workers that the New Minimum wage would take effect very soon.

Prior to this, the President announced a six-month temporary wage increase for some workers.

The wage increase, which has taken effect, was to help cushion the effects of the fuel subsidy removal, which has led to a surge in the cost of living.

“Based on our talks with labour, business and other stakeholders, we are introducing a provisional wage increment to enhance the federal minimum wage without causing undue inflation.

“For the next six months, the average low grade worker shall receive an additional N25,000 per month,” Tinubu had said.

Again, in his New Year’s speech, he said: “The economic aspirations and the material well-being of the poor, the most vulnerable, and the working people shall not be neglected. It is in this spirit that we are going to implement a new national living wage for our industrious workers this new year. It is not only good economics to do this; it is also a morally and politically correct thing to do.’’

Projecting into the year, especially as they anticipate the commencement of negotiations for the new National Minimum Wage, effective April 1, the experts believe that the quest for a new wage that is sufficient to provide a decent living for workers and their family members was crucial.

They said a well-motivated and well-remunerated workforce has a positive impact on productivity and national development, adding that the pursuit of a national living wage is not merely an economic necessity, but also a moral imperative.

Stakeholders’ expectations

In view of this, the Nigerian Employers Consultative Association (NECA) called on the Federal Government to revive the Committee on the new National Minimum Wage.

NECA, also a member of the Tripartite Committee set up by the government, noted that the government had requested for the nominees from the Organised Private Sector (OPS) and the Organised Labour, which according to body, been forwarded.

Director-General of NECA, Adewale Smart Oyerinde, said as a representive of the OPS, said: “Towards the end of last year, November and December, the government had requested for the nominees of the Organised Private Sector, which we have forwarded to them and, I believed, organised labour have forwarded theirs to them.

“What we are expecting is for the government to actually call the committee to commence their work immediately.

“We are hoping that before the end of this month, the committee will be called to commence deliberation that will lead us to arrive at the new national minimum wage for workers.”

He canvassed the negotiation of a new wage that is commensurate with the realities of the situation.

“We think the N30,000 minimum wage is no longer realistic because our economic situation and inflation rates have eroded the purchasing power of an average worker, and the household also is feeling the pinch.

“For the employers, we support a realistic minimum wage. Within the context of the negotiation, there are other variables beyond inflation rates. You also look at the ability of businesses to pay, you also look at the economic situation and productivity.’’

While he mentioned that there had been a conversation about the concept of a living wage and the reasons a living wage is desirable, he said globally and even at the high end, there is no framework for arriving at a living wage.

He added that the committee tasked with negotiating a national minimum wage framework based on the International Labour Organisation (ILO) Convention 131 would still have to review President Tinubu’s New Year’s speech on the matter.

Oyerinde commended President Tinubu on the move to reduce the entourage of government officials, adding that this is one of the ways to reduce the cost of governance.

President, Nigeria Labour Congress (NLC), Joe Ajaero, hoped that the new minimum wage would approximate a living wage, saying that the Tripartite Committee has its job cut out for it.

However, he said, the government should, in the first quarter of the year, fulfill its promises to the citizens as contained in the 15-point agreement signed on October 2, 2023, during negotiations with labour and the government to cushion the impact of fuel subsidy on Nigerians.

Part of the agreements, the NLC chief said, was the issue around the Compressed Natural Gas (CNG) buses and the conversion kits, calling on the government to implement the agreement.

Ajaero said the buses should be the produced by local manufacturers to boost local content. Besides, he said it would make fares cheaper.

He said the Congress expects the Port Harcourt Refinery to be operational.

Also, Deputy President, Trade Union Congress of Nigeria (TUC), Dr. Tommy Okon, urged the government to encourage employers to pay the national minimum wage. He also said the Organised Labour would take cognisance of education, health, housing, and transport.

Recall that the NLC and TUC listed conditions for the proposed review of the national minimum wage, saying the continuous rise in inflation and the devaluation of the naira must be checked before the salary increase announced by the Federal Government could be considered.

The Organised Labour explained that the cost of virtually all consumables had been on the rise, stressing that if this should continue, any amount that would be added to the minimum wage might not meet the expectations of workers.

The TUC had demanded a minimum wage of N200,000 monthly, while the President, the National Union of Banks, Insurance and Financial Institution Employees (NUBIFIE), Abakpa Anthony,proposed the minimum wage of between N120,000 and N150,000, adding that the high-earning workers and their poorly paid counterparts shop in the same market. (The Nation)

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