Published On: Wed, Nov 7th, 2018

Buhari endorses N30,000 minimum wage

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•To send draft bill to NASS

By Lawrence Olaoye

President Muhammadu Buhari has endorsed the report of the tripartite committee recommending N30,000 as the new minimum wage for workers in the country.
The President, in his comments after receiving the report submitted to him by the Chairman of the Tripartite committee on National Minimum Wage, Ama Pepple, assured that his government would find a way to implement the new wage bill regardless of the nation’s economic challenges.
According to him, the welfare of the workers remains of paramount importance to his administration. The President also indicated that the new Minimum Wage Bill would be forwarded to the National Assembly for consideration and passage into law, even though he did not specify the time he would do so.
Buhari acknowledged the challenges associated with the last wage review which produced N18,000, noting that the prices of key consumables have increased; and that the most vulnerable were workers struggling to make ends meet.
According to him, even though the country rebased its economy to gain marginal growth in Gross Domestic Products (GDP), the reported successes did not trickle down into the pockets and homes of majority of Nigerians.
He said, “On 27th November 2017, I inaugurated the National Minimum Wage Committee with a mandate to recommend a new minimum wage for the workers of our country.
“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. From the onset, we knew the committee had a difficult task ahead of it. But at the same time, we were 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.
“I am not surprised that the committee has worked for close to one year. I am also not surprised that on a few occasions, the debates got heated and sometimes, these differences came out.
“What is 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. On behalf of all Nigerians today, I want to thank you for your commitment and sacrifice in getting us to where we are today.
“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. I want to assure you all that we will immediately put in place the necessary machinery that will close out these open areas. 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 recognise the leadership of the organized labour and private sector as well as representatives of State and Federal Governments for all your hard work. The fact that we are here today, is a notable achievement.
“As the Executive Arm commences its review of your submission, we will continue to engage you all in closing any open areas presented in this report. I therefore would like to ask for your patience and understanding in the coming weeks.
“May I therefore, employ workers and their leaders not to allow themselves to be used as political weapons”.
Pepple, in her comments said “To arrive at our 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.
“The Committee also considered the overall macro-economic indicators, including the revenue and expenditure profile of government as provided by the honorable 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.
“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.
“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.”

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