Minimum Wage Update: NLC Recommends Sanctions for Non-Compliant Governors
On Sunday, the Nigeria Labour Congress (NLC) indicated it would advocate for a clause that would impose sanctions on governors and local government administrators who fail to enforce the new minimum wage.
The NLC's National Treasurer, Hakeem Ambali, revealed during an interview with our correspondent in Abuja that the failure of state governors to pay the current minimum wage is due to the absence of penalties in the 2019 Minimum Wage Act.
Meanwhile, the 37-member committee established by the Federal Government is scheduled to meet this week to discuss reports from various sub-committees representing the country's six zones.
President Bola Tinubu, through his Vice-President Kashim Shettima, inaugurated the 37-member panel for the new minimum wage on January 30, 2024.
Encompassing members from federal and state governments, the private sector, and organized labor, the committee's role is to propose a new national minimum wage for the country.
Recommended Sanctions
Ambali remarked, “If we examine the purchasing power in Nigeria, it's clear there's a significant gap between 2019 and now. The cessation of fuel subsidy payments has notably increased the financial burden on Nigerians."
In the new minimum wage bill, which the President is expected to sign into law soon, we've included specific provisions to make it difficult for governors to avoid paying the new minimum wage. It's worth mentioning that some governors are actively participating in the negotiation process.
"Labor organizations must also be proactive. Once the National Minimum Wage Bill is signed into law, along with labor's commitment, we are confident that the new rates will be implemented. As you've seen, even private companies have started increasing salaries and some are offering additional wage awards to their employees.
"To enforce compliance, the bill includes clauses that outline sanctions and also addresses increased allocations to local governments, ensuring that there are no excuses for not paying the approved wage.
The 37-member Tripartite Committee on Minimum Wage, established by the Federal Government, is scheduled to meet this week to discuss various stakeholders' proposals for a new national minimum wage.
Additionally, an executive bill is expected to be sent to the National Assembly to amend the current Minimum Wage Act.
The upcoming minimum wage is intended to help offset the impact of the subsidy removal on Premium Motor Spirit.
During public hearings, different regions proposed varying minimum wage amounts. The South-West zone suggested N794,000; the North-East recommended N560,000; the North-West proposed N485,000; the North-Central suggested N709,000; the South-South advocated for N850,000; and the South-East proposed N540,000.
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