The leadership of the National Assembly on Monday expressed its resolve to accelerate the passage of the new minimum wage law for Nigerian workers when transmitted for consideration by President Bola Tinubu’s administration.
President of the Senate, Senator Godswill Akpabio, and Speaker Tajudeen Abbas gave the assurance in Abuja, during the opening of a one-day retreat on ‘Labour reforms and the quest for living wage in Nigeria: A Focus on Legislative intervention’, organised by National Institute for Legislative and Democratic Studies (NILDS), for Chairmen and Members of joint Senate and House Committees on Employment, Labour, and Productivity.
In his keynote address, Senator Akpabio who frowned at the failure of some Subnational Governments that failed to implement the current N30,000 national minimum wage, however, argued that with increased monthly allocations from the federal purse due to the removal of fuel subsidy, expressed optimism that “all States will abide by the new minimum wage when finally determined and legislated.”
While acknowledging the dynamics of fixing minimum wage varies from one country to the other, Senator Akpabio averred that Nigeria has its own peculiarities and laws that guide the national minimum wage.
“A brief insight from the Nigerian situation will help to illuminate this position. One, like all other countries of the world, Nigeria’s labour market has two segments, namely the public and private sectors. However, the public sector workers are the most affected by increases in the minimum wage for two main reasons. First, it is not proper for the government to violate its own law. Second, nearly all public-sector workers are unionised. Violations can therefore be resisted and counterproductive.
“Two, majority of Nigerians are not directly affected by changes in the minimum wage mainly because 92.3% of the working-age employed population work in the informal sector, mostly as farmers, traders, artisans, or providers of services.
“Conversely, only about 8% of Nigerians would benefit from a minimum wage increase, all other things being equal. Unfortunately, ‘all other things’ have not always been equal. Some components of this 8% who work in the private sector, especially in services, hospitality, small private clinics, and non-profit organisations earn below the minimum wage. This is partly because many of them are not sufficiently organized and unionized. As such, they lack a veritable platform for effective organisation and resistance.
“In the recent past, even some segments of the public sector, especially at the state level, failed to implement the national minimum wage. They either failed to domesticate the legislation or failed to honour it after domestication through the payment of percentage salaries for various reasons. Now that it is on record that all States have access to more monthly allocations as a result of the removal of fuel subsidy, it is expected that all States will abide by the new minimum wage when finally determined and legislated.
“My reference to the above challenges is not to denigrate the ongoing demand by labour for a new minimum wage but to serve as a reminder of the complexity of the issues in Nigeria. For instance, how will the new minimum wage, even if eventually resolved, affect the majority of Nigerian not directly covered by it? How will the informal sector respond to it? In what ways could it impact employment, income, and inequality across board and beyond the labour force? These are relevant posers that we cannot completely ignore.
“Be that as it may, it is important to note that historically, agitations for minimum wage in Nigeria date back to the 1980s. The ongoing agitation is predicated upon the claims, and rightly so, that the current minimum wage of 30,000 Naira can no longer keep pace with the cost of living.
“This concern gains more credence in the light of the ongoing economic reform agenda of the current administration of President Bola Ahmed Tinubu (GCFR), particularly the removal of fuel subsidy and the floating of exchange rate. Both policies would appear to have created short-term, unintended consequences for Nigerians, notably economic hardships due to attendant inflation and high cost of living.
“At this juncture, let me make it clear that the 10th NASS under my leadership is on the same page with Nigerians on this matter. We understand and appreciate your concerns. With the current realities, a minimum wage of 30,000 Naira is not tenable. Even doubling it may still not be adequate.
“I can assure you that President Tinubu is conscious of these realities. He is also willing and able to do the needful. This partly explains some of the temporary relief measures his administration has initiated and implemented (and still implementing). However, the overall priority of the Renewed Hope Agenda of this government, I must say, is to find long-term, lasting solutions to the economic challenges of the country. The government is on course in this regard.
“To this end, the 10th Assembly, have always acted in solidarity with the labour force in their rightful demand for a living wage. Among other interventions, we facilitated a meeting of critical stakeholders, including the leadership of various labour organisations, organised private sector, and relevant government MDAs.
“This happened at a time when all hopes for timely resolution seemed lost, ultimately leading to a truce and suspension of the industrial actions initiated by labour.
“We have also made the commitment to facilitate the speedy consideration and passage of the new Minimum Wage Bill whenever the proposal is presented to the NASS by the President. Let me assure you that we stand by this commitment. We cannot afford to fail the nation at this critical time.”
In his remarks, Speaker Abbas described labour as a critical component and stakeholder in our national development architecture that deserves the best treatment in the true sense of the term. Anything short of that is totally unacceptable.
“Second and closely connected to the first, I have constantly argued not only for a tenable and sustainable living wage for Nigerian workers but also identified poor remunerations as one of the main causes of corruption in the country. Poorly paid workers are highly susceptible to corrupt inducements and pressures.
“Third, in order to give practical expressions to these convictions, I have been involved, both in my personal capacity as Speaker of the House of Representatives, and in collaboration with the Senate President, Distinguished Senator Godswill Obot Akpabio, CON, our indefatigable leader of the 10th NASS, in facilitating diverse interventions aimed at finding a lasting solution to the minimum wage conundrums. The latest of such efforts relates to our mediation in the deadlock in the negotiation of a new minimum wage by the tripartite committee consisting of representatives of the government, organised private sector, and labour unions.
“The outcome was the brokering of a truce and the eventual suspension of the industrial action already embarked upon by the labour unions to allow for further consultations and negotiations.
“In the light of the foregoing, I consider this retreat as significant, with a lot of potential in finding lasting solutions to instability in labour relations in the country; particularly the ongoing quest and negotiation among relevant stakeholders for a sustainable living wage by Nigerian workers.
“This subject, contentious and divisive as it may be, has been and remains one of the most pressing issues facing the administration of President Bola Ahmed Tinubu and the country at large. Without an expeditious resolution, the minimum wage question will continue to pose substantial threats to workers’ welfare, income, and productivity.
“It can also complicate issues of employment, poverty, and inequality and by extension, national growth and development. It is, therefore, a combination of many things: an economic necessity, a moral imperative, and the foundation for human dignity, national growth, and development.
“Moreover, considering the excruciating conditions under which an average Nigerian worker has had to operate, especially since the removal of fuel subsidy and the floating of the exchange rate, the imperative of a viable platform for critical engagements in search of workable solutions has never been this pressing.”
“This retreat offers such a platform, with an opportunity for critical reflections among stakeholders. If well utilized and its potentials maximized, this platform can engender robust discussions and collaborative efforts for objectively addressing all vexatious labour relations and governance issues, especially the minimum wage. Once resolved, both the workers and the country will benefit. When workers’ welfare issues are addressed, the prospects of higher motivation and productivity are boosted, leading to national growth and development.”
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