Minimum wage: FG, labour settle for N70,000

ABUJA — THE Federal government and Organized Labour yesterday settled for N70,000 as the new minimum wage.

The agreement was reached after the meeting between President Bola Tinubu and the leadership of organized labour as well as some members of the government team on the tripartite committee on the new national minimum wage.

Recall that the tripartite committee had submitted two figures in its report to the President as a result of disagreement among the government, the private sector and organized labour.

While the government and the private sector offered N62,000, organized labour demanded N250,000.

Speaking to State House correspondents after the meeting with the President yesterday, the Minister of Information and National Orientation, Mohammed Idris, said President Tinubu agreed to pay N70,000 from the initial offer of N62,000.

He said: “Today’s (yesterday) a happy day for Nigeria. You recall that last week, we had a meeting here and the Organized Private Sector and the sub-nationals have also held their various meetings with Mr. President, following the submission of the tripartite agreement to Mr. President.

“Labour came last week. They had a meeting with Mr. President. They asked for an adjournment for a week to go and consult further. They did those consultations. They came back today (yesterday) and we have met with Mr. President.

FG, Labour agree on N70,000

“We’re happy to announce that both the Federal Government and Organized Labour have agreed on an increase on the N62,000. The new national minimum wage that we expect to submit to the National Assembly for legislation is N70,000.

“But that is not all. There is also a boost, Mr. President has assured to ensuring that massive investment is going to be made in the area of infrastructure. There is also a deepening of the investment of the Federal Government in renewable energy.

“More money is going to go into the acquisition of more buses, the CNG buses, Nigeria is going to be more CNG-compliant, according to the President.

“We’re moving in this transition to renewable and all other things Mr President has assured Labour, the issue of ASUU (Academic Staff Union of Universities), SSANU (Senior Staff Association of Nigerian Universities) and NASU (Non-Academic Staff Union of Educational and Associated Institutions) is also going to be looked at.

“We are happy, we are very thankful for the role organized labour has played. They recognized the Federal Government’s role in ensuring that we have local government autonomy, and also ensuring that both Labour and government are on the same page.

“They have seen the magnanimity of the President and today, the leadership of Labour said they didn’t come here for negotiation, not at all, they came here in that deep sense of patriotism to ensure that Nigeria remains united, Nigeria becomes more prosperous and it is in that spirit that they agree with what the Federal Government has done today.

“We want to thank Labour for their patriotism. We also want to thank Mr President, the Federal Government, the sub-nationals and Organized Private Sector for going through this painstaking effort but also ensuring that at the end of the day, Nigeria is the winner for it all.”

Also speaking, the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, said President Tinubu had always shown he would not disappoint the country, which he has exhibited.

She recall that Labour met with the President last week, and they (labour) asked that President Tinubu gave them one week to consult more.

“Of course, at the end of the day, the consultation came, very fruitful because the President said he has to be a father, that it is not the issue of the law of who is right, or who will blink first, that he is our father, like he has always said.

“That we should end the issue of give me N1000, add N1000 and all that. , first and foremost, the review of this minimum wage policy has to be reduced to three years, and five years is too long a time to get any minimum wage review.

“Of course, that labour should look at the indices of the economy and accept N70,000, minimum wage, and that it has to be reviewed every three years, so we’re able to evaluate and see whether our economy is picking up, or whether something has to be done further, considering the sensitivity of the issue.

“He promised and asked that the Minister of Finance and Coordinating Minister of the Economy and the Minister of Budget and Economic Planning should make sure they go back to the books, because he has the discretion to look into the issue ot SSANU, NASU and all that so that their money should be paid.

“They should work out the modalities, whether it’s 50%, or whatever, but that he has given that waiver to be paid, because, of course, that was an issue of ‘no work, no pay’, and that issue has to be laid to rest.”

She said other things were discussed, adding that the President reassured Nigerians that he was not going to rest, as he was working diligently to make sure the economy recovered.

The Labour Minister appealed to Labour to take into consideration all the efforts of the government in trying to turn things around.

Asked to clarify the issue of SSANU and NASU over the four months withheld salaries, Onyejeocha said: “That’s what he (President) said, that the ministers of finance and education were there and then budget and economic planning. He told them to go and work out the modalities to pay their money.”

Reps to expedite action on bill – Speaker Abbas

Also last night, Speaker of the House of Representatives, Tajudeen Abbas, assured that the new minimum wage bill from the executive would be given accelerated action.

Reacting in a statement by his Special Adviser on Media and Publicity, Musa Abdullahi Krishi, Speaker Abbas, said: “This significant agreement with the organized labour reflects the President’s profound understanding, and sensitivity to the challenges facing Nigerian workers, aligning seamlessly with his Renewed Hope agenda.

“I am elated by the action of President Bola Tinubu on the minimum wage. He has demonstrated good leadership by acceding to a national minimum wage of 70,000.

“President Tinubu’s proactive approach in addressing the pressing issues within the labour sector is commendable. His acceptance to also meet the demands of university unions concerning unpaid salaries further demonstrates his unwavering commitment to fostering a fair and just working environment for all Nigerians.

“I believe, with President Tinubu, Nigeria is on the path of greatness. We are lucky to have a listening and compassionate leader at this moment in our history.”

Offer accepted with mixed feelings

On his part, NLC president, Comrade Joe Ajaero, said organized Labour accepted the President’s offer of N70,000 with mixed feelings because of the prevailing economic circumstances in the country.

He said: “Well, we were here last week and we’re here now. What has been announced in terms of the amount of N70,000 happened to be where we are now. But the good thing about it is that we will not wait for another five years to come for review.

“Rather, than settling on a figure that we wait for five years, is like we’ll have to now negotiate even two times within five years, to go up. That is one of the reasons, you know, we decided to reach where we are today because of the proviso that ‘you can review in the next three years.’

“The other one, we came with other issues in the basket, like the issue of SSANU, NASU and others, especially with the affront by the FCT Commissioner of Police, we brought it to Mr President and talked on the need for that matter to be addressed.

“Magnanimously, he asked the agencies concerned to work out modalities for payment of those workers in the universities.”

Ajaero said the President promised some incentives such as CNG which would lessen the burden Nigerian workers were passing through.

“But we have to move ahead, despite the situation, and the negotiation can’t linger, coming from N62,000 to N70,000, and then with the proviso that we are coming back soon to negotiate it.
“We’re taking it back to our constituency to see how they can get a buy-in. So that’s what has transpired this afternoon (yesterday) except there’s another question.”

Also speaking, TUC President, Comrade Festus Osifo, said: “Yes, just as has been said by the three previous speakers, the Minister of Information, Minister of State for Labour as well as the NLC President, they’ve laid the accounts of what transpired in today’s (yesterday) meeting.

“The President made a pronouncement or announcement of N70,000, that by next week, they should put the finishing touches to the bill and do the transmission to the National Assembly

“But why this became a catch is actually because we from the organized labour have been pushing that the issue of five years review is to me so much, that a lot of economic indices may have changed because we are in an era where things are moving very fast in terms of both macro and micro economic policies.

“But with also the caveat that this is going to be done every three years. The next review will be in three years. And after that, pronouncement, we from labour just as has been said, have received what the President has promised from both ends.

“As he said, we made a case for both the SSANU and NASU, that the President should, as a father of the nation, look at it compassionately, and do the needful, so that we will not have a case where the universities would be closed again.

“That is actually a problem because it is your children, my brothers, that attend these universities. I’m not sure the kids of the bourgeoisie, like those standing behind us, whether they attend these universities, we don’t know.

“So, at the end, he said he was going to look at it and that they should report back to him as has been reported. So we are quite excited with that because for us, anything that will keep the universities shut, we will not allow it to happen. We will do everything possible to ensure issues are resolved amicably. So, we are waiting for the final outcome of that.

“Then also the issue of student loans as well, we commended the president for that, but we said the money should get to the people that are targeted, not a situation where the children of the rich are also able to access the student loan.

“That a parameter be put in place so that the children of the poor, those that cannot actually afford school fees should be the target and they also said they will look at it as well.”

It will be recalled that when the tripartite committee met, the government team and the private sector started with the offer of N48,000 then to N54, 000, N57,000, N60,000 and finally N62,000.
On the other hand, the organized labour started with N615,000 demand, then N500,000, to N497,000 and finally N250,000.

We can’t pay without FG’s support — OPS

On its part, the Organised Private Sector, OPS, warned that its members will not be able to pay N70,000 new national minimum wage announced by the Federal Government without support.

Reacting to the news of President Bola Tinubu’s approval of N70,000 as the new national minimum wage, the Organized Private Sector of Nigeria, OPSN, comprising the Nigeria Employers’ Consultative Association, NECA, Manufacturers’ Association of Nigeria, MAN, National Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, Nigeria Association of Small and Medium Enterprises, NASME, and Nigerian Association of Small Scale Industrialists, NASSI, however lauded the President for putting to rest the protracted issue of the national minimum sage.

Spokesperson of OPS, and Director-General NECA, Adewale-Smatt Oyerinde, said in Lagos yesterday: “While we commend the President for putting to rest the immediate issue of the national minimum wage, we also note, most importantly, his commitment to support the sub-nationals and the Organized Private Sector to pay the new wage.

“Consultation is still ongoing within the Organized Private Sector. During the consultations at the National Minimum Wage Committee, the Organized Private Sector strongly expressed concern about its ability to pay the N62,000 recommended by the Tripartite Committee.

“The N62,000 was premised on the understanding and agreement by government representatives that the government will take definite steps to reduce the current economic burden on the organized private sector.

“The supports requested included the reversal of the increase in electricity tariffs, CBN redemptions of all outstanding forwards for companies in the productive sector, a freeze on the introduction of new taxes and levies on businesses for the next five years, duty exemption on imported conversion kits and government subsidy on procurement of same.

‘’Others include fixed rate of N800 for the assessment of import duty on all production inputs, revisit of the recent Financial Reporting Council regulation to curtail its application to private businesses, enforcement of the Executive Order 003 and 005 on patronage of Made in Nigeria products by ministries, departments and agencies of government and the National Assembly and the discontinuation of the price verification portal, as it is inimical to the smooth operation of businesses and that the basis for setting it up no longer exist, among others.

“While we commend the President for the approval, it should be noted that the ability to pay remains a fundamental consideration. The proposed support by the President to organized businesses should be immediately announced to enable businesses to plan effectively.”

NLC holds NEC meeting today

Meanwhile, the NLC has scheduled an emergency National Executive Council, NEC, meeting for today to deliberate on the N70,000 new national minimum wage approved by President Tinubu.

According to Vanguard sources, the NEC meeting will hold by 11 am at Labour House, Central Business District, Abuja.

Vanguard gathered that the NEC meeting was scheduled for the NLC President to officially brief members on the outcome of the meeting with President Tinubu.

A source said: “Irrespective of what you have read or heard, it is the NEC that will decide either to accept or reject what President Tinubu has approved.

‘’Don’t forget that the President and others are representatives of other labour leaders and workers. They are to brief those they represent.”

“I believe, with President Tinubu, Nigeria is on the path of greatness. We are lucky to have a listening and compassionate leader at this moment in our history.”

Offer accepted with mixed feelings

On his part, NLC president, Comrade Joe Ajaero, said organized Labour accepted the President’s offer of N70,000 with mixed feelings because of the prevailing economic circumstances in the country.

He said: “Well, we were here last week and we’re here now. What has been announced in terms of the amount of N70,000 happened to be where we are now. But the good thing about it is that we will not wait for another five years to come for review.

“Rather, than settling on a figure that we wait for five years, is like we’ll have to now negotiate even two times within five years, to go up. That is one of the reasons, you know, we decided to reach where we are today because of the proviso that ‘you can review in the next three years.’

“The other one, we came with other issues in the basket, like the issue of SSANU, NASU and others, especially with the affront by the FCT Commissioner of Police, we brought it to Mr President and talked on the need for that matter to be addressed.

“Magnanimously, he asked the agencies concerned to work out modalities for payment of those workers in the universities.”

Ajaero said the President promised some incentives such as CNG which would lessen the burden Nigerian workers were passing through.

“But we have to move ahead, despite the situation, and the negotiation can’t linger, coming from N62,000 to N70,000, and then with the proviso that we are coming back soon to negotiate it.
“We’re taking it back to our constituency to see how they can get a buy-in. So that’s what has transpired this afternoon (yesterday) except there’s another question.”

Also speaking, TUC President, Comrade Festus Osifo, said: “Yes, just as has been said by the three previous speakers, the Minister of Information, Minister of State for Labour as well as the NLC President, they’ve laid the accounts of what transpired in today’s (yesterday) meeting.

“The President made a pronouncement or announcement of N70,000, that by next week, they should put the finishing touches to the bill and do the transmission to the National Assembly

“But why this became a catch is actually because we from the organized labour have been pushing that the issue of five years review is to me so much, that a lot of economic indices may have changed because we are in an era where things are moving very fast in terms of both macro and micro economic policies.

“But with also the caveat that this is going to be done every three years. The next review will be in three years. And after that, pronouncement, we from labour just as has been said, have received what the President has promised from both ends.

“As he said, we made a case for both the SSANU and NASU, that the President should, as a father of the nation, look at it compassionately, and do the needful, so that we will not have a case where the universities would be closed again.

“That is actually a problem because it is your children, my brothers, that attend these universities. I’m not sure the kids of the bourgeoisie, like those standing behind us, whether they attend these universities, we don’t know.

“So, at the end, he said he was going to look at it and that they should report back to him as has been reported. So we are quite excited with that because for us, anything that will keep the universities shut, we will not allow it to happen. We will do everything possible to ensure issues are resolved amicably. So, we are waiting for the final outcome of that.

“Then also the issue of student loans as well, we commended the president for that, but we said the money should get to the people that are targeted, not a situation where the children of the rich are also able to access the student loan.

“That a parameter be put in place so that the children of the poor, those that cannot actually afford school fees should be the target and they also said they will look at it as well.”

It will be recalled that when the tripartite committee met, the government team and the private sector started with the offer of N48,000 then to N54, 000, N57,000, N60,000 and finally N62,000.
On the other hand, the organized labour started with N615,000 demand, then N500,000, to N497,000 and finally N250,000.

We can’t pay without FG’s support — OPS

On its part, the Organised Private Sector, OPS, warned that its members will not be able to pay N70,000 new national minimum wage announced by the Federal Government without support.

Reacting to the news of President Bola Tinubu’s approval of N70,000 as the new national minimum wage, the Organized Private Sector of Nigeria, OPSN, comprising the Nigeria Employers’ Consultative Association, NECA, Manufacturers’ Association of Nigeria, MAN, National Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA, Nigeria Association of Small and Medium Enterprises, NASME, and Nigerian Association of Small Scale Industrialists, NASSI, however lauded the President for putting to rest the protracted issue of the national minimum sage.

Spokesperson of OPS, and Director-General NECA, Adewale-Smatt Oyerinde, said in Lagos yesterday: “While we commend the President for putting to rest the immediate issue of the national minimum wage, we also note, most importantly, his commitment to support the sub-nationals and the Organized Private Sector to pay the new wage.

“Consultation is still ongoing within the Organized Private Sector. During the consultations at the National Minimum Wage Committee, the Organized Private Sector strongly expressed concern about its ability to pay the N62,000 recommended by the Tripartite Committee.

“The N62,000 was premised on the understanding and agreement by government representatives that the government will take definite steps to reduce the current economic burden on the organized private sector.

“The supports requested included the reversal of the increase in electricity tariffs, CBN redemptions of all outstanding forwards for companies in the productive sector, a freeze on the introduction of new taxes and levies on businesses for the next five years, duty exemption on imported conversion kits and government subsidy on procurement of same.

‘’Others include fixed rate of N800 for the assessment of import duty on all production inputs, revisit of the recent Financial Reporting Council regulation to curtail its application to private businesses, enforcement of the Executive Order 003 and 005 on patronage of Made in Nigeria products by ministries, departments and agencies of government and the National Assembly and the discontinuation of the price verification portal, as it is inimical to the smooth operation of businesses and that the basis for setting it up no longer exist, among others.

“While we commend the President for the approval, it should be noted that the ability to pay remains a fundamental consideration. The proposed support by the President to organized businesses should be immediately announced to enable businesses to plan effectively.”

NLC holds NEC meeting today

Meanwhile, the NLC has scheduled an emergency National Executive Council, NEC, meeting for today to deliberate on the N70,000 new national minimum wage approved by President Tinubu.

According to Vanguard sources, the NEC meeting will hold by 11 am at Labour House, Central Business District, Abuja.

Vanguard gathered that the NEC meeting was scheduled for the NLC President to officially brief members on the outcome of the meeting with President Tinubu.

A source said: “Irrespective of what you have read or heard, it is the NEC that will decide either to accept or reject what President Tinubu has approved.

‘’Don’t forget that the President and others are representatives of other labour leaders and workers. They are to brief those they represent.”