Home News We are committed to national minimum wage implementation– Buhari

We are committed to national minimum wage implementation– Buhari


President Muhammadu Buhari on Tuesday received the report of the Tripartite Committee on the Review of National Minimum Wage that recommended N30,000 as the new minimum wage and expressed his commitment to having a new National Minimum Wage Bill passed into law soon.

The President said that based on the argument of the government team insisting on N24,000 and that of the organized labour that agreed N30,000, he would put in place the necessary mechanism that would close out the open areas.

He said: “Our plan is to transmit the Executive Bill to the National Assembly for passage within the shortest possible time. I am fully committed to having a new National Minimum Wage Act in the very near future.

“Let me use this opportunity to recognize the leadership of the organized labour and private sector as well as representatives of state and federal government for all your hard work. The fact that we are here today is a notable achievement.”

Buhari expressed delight that the committee had successfully completed its assignments in a peaceful and non-controversial manner.

The President recalled that on 27th November 2017, he inaugurated the National Minimum Wage Committee with a mandate to recommend a new minimum wage for the workers of our country.

He clarified further: “This exercise became necessary for many reasons. The last review took place in 2011. We all know since then, the prices of key consumables have increased and the most vulnerable of our workers are struggling to make ends meet.

“Since 2011, many changes have taken place. Nigeria rebased its GDP to become the largest economy in Africa. We reported very strong GDP growth rates and exceptional performance of our capital markets.

“However, these reported successes did not flow into the pockets and homes of majority of Nigerians. In the last three years, we focused on correcting this deficiency. We are working to create a diversified and inclusive economy.

“We are pushing to clear pension arrears owed to our retired workers with the limited resources available to us. We supported State Governments to pay workers salary. And of course, we set up a committee in order to review the minimum wage of workers.

“In constituting this committee, we took into account the need for all stakeholders to be adequately represented – the government, the private sector and most importantly the workers. Our goal was to get an outcome that was consensual”, the President added.

According to him, from the onset, the government knew the committee had a difficult task ahead of it but was also confident that the patriotic and professional background of its members would produce realistic, fair and implementable recommendations that will be considered by both the executive and legislative arms of government.

The President said that he was not surprised that the committee had worked for close to one year and that on a few occasions, the debates got heated and sometimes, these differences came out.

He pointed out that what was truly inspiring is that, in almost all instances of disagreements, the committee members always came back to the negotiating table with a common goal of improving the welfare of Nigerian workers.

Buhari expressed the appreciation of all Nigerians to the committee members for their commitment and sacrifice in getting the negotiations on the new minimum wage to a successful conclusion.

The President said: “In the past few days, I have been receiving regular updates on your deliberations. And today, I am pleased that you have completed your work in a peaceful and non-confrontational manner. The entire nation is grateful to you all.

“The Committee Chairman highlighted some of the challenges encountered during your deliberations, especially as it relates to having a consensus position acceptable by all parties. “I understand, on the government side, the concerns raised were around affordability – that today many states struggle to meet their existing salary requirements.

“On the side of labour, the points raised focused on the need for any increase to be meaningful. In a way, both arguments are valid”, Buhari added.

Buhari assured that as “the Executive Arm commences its review of the committee’s submission, government will continue to engage the organized labour in closing any open areas presented in thereport, seeking for workers’ patience and understanding in the coming weeks.

He implored workers and their leaders not to allow themselves to be used as political weapons.

The Chairman of the Tripartite Committee, Amal Pepple, in her speech said that to arrive at its recommendation, the committee carefully weighed the demand of the Nigerian workers which was predicated on the high cost of living occasioned by unfavourable exchange rate and rising inflation over the past few years, among other factors.

She said that the committee also considered the overall macro-economic indicators, including the revenue and expenditure profile of government as provided by the ministers of Budget and National Planning and Finance as well as the Minimum Wage proposed by some state governments in their memoranda submitted to the committee.

Pepple pointed out further that consideration was also given to the critical role of the informal sector in employment generation and the need for a realistic minimum wage that will not stifle the growth of the sector and the overall economy.

She expatiated: “After carefully weighing these critical factors and bearing in the mind the overriding interest of the economy the Committee while noting the offer of N24,000 by the Federal Government, is recommending an increase in the existing minimum wage from N18,000 to N30,000.

“We believe that the implementation of the recommended minimum wage, will, no doubt, boost the purchasing power of workers, increase consumption expenditure and ultimately stimulate business and overall economic growth.”

“The committee has also produced a draft national minimum wage bill 2018 for condition by government. We strongly believe that the enactment of the draft bill into law is very critical to the operation and future reviews of the National Minimum Wage”, the committee chair added.

In his remarks, he National President of Nigeria Labour Congress, NLC, Ayubba Wabba while briefing State House correspondents said that the committee’s recommendation was N30,000 and that this was not hidden.

.The labour leader said: “When the N18,000 was actually implemented in 2011, towards 2015, most of the states empties their treasuries and therefore they had difficulty. If there is the will, we are certain that there will be a way out.

“All of us know that a number of factors have affected the purchasing power. The value of the N18,000 then was almost N140 to the US dollar. So, the economic factor is very germane”, Wabba added.

Top government officials and OPS leaders present at the meeting where the committee’s report was presented to the President include the Secretary to the Government of the Federation, Boss Mustapha; the Minister of Labour and Employment, Senator Chris Ngige; Minister of Finance, Zainab Ahmed; and the Director General of NECA, Olusegun Oshinowo, among others.