Why New Minimum Wage Is Not Feasible Soon – FG

The Federal Government has established that the new national minimum wage proposed by the Nigerian labour force is not realisable before September.

Sen. Chris Ngige, the minister of labour and employment said this yesterday, May 29 in Abuja, backing out from the earlier agreed September deadline.

The Organised Labour including the National Labour Congress (NLC) and Trade Union Congress (TUC) had in April presented a fresh demand for higher new National Minimum Wage for
workers to the Federal Government Tripartite Committee using current economic indices.

While addressing pressmen yesterday, Ngige said: “The committee on the new National Minimum wage is expected to conclude its work by the end of September and present its report to the government for deliberation and approval before an executive bill is sent to the national assembly on the issue.”

The minister said the issue of capacity to pay was also paramount in the deliberations on the minimum wage.

He said to get the input of all those concerned including state governments and the organised private sector, the committee embarked on zonal public hearing across the country.

The minister said in the course of the zonal public hearings, many state governments made different submissions ranging from N22,000 monthly to N58,000.

He added that the governors were also of the belief that for the new minimum wage to become effective, the current revenue allocation formula would have to be reviewed in favour of the states and local government.

He said some other states were also of the view that the minimum wage should be maintained at the current N18,000 in view of the inability of some states to pay the current wages.

The minimum wage committee is expected to submit its report to the national council of state and the federal executive council for approval before a bill will be sent to the national assembly to legalise the work of the committee.

The minister however opined that there’s a progress in the discharge of responsibility as difficult as it seems. progress in its assigned responsibility.

Six governors are members of the committee as well as representatives of the private organised sector in an effort to carry everybody along.