President Bola Tinubu is scheduled to meet with labour leaders on Thursday to negotiate a new minimum wage, following demands from the Association of Local Government of Nigeria (ALGON) for a revised revenue sharing formula favoring the country’s 774 local government areas.
After the 15th Federal Executive Council (FEC) meeting at the State House in Abuja on Monday, the Minister of Information and National Orientation, Mohammed Idris, informed journalists about the upcoming meeting.
This session continues the President’s consultations with stakeholders regarding the new minimum wage.
An amendment bill to the national budget will be sent to the National Assembly once a consensus on the new minimum wage is reached. The previous meeting between the President and labour leaders ended without a conclusive figure and was adjourned until this Thursday.
The Tripartite Committee on the New National Minimum Wage had suggested two different figures due to disagreements: the government and private sector proposed N62,000, while Organised Labour demanded N250,000.
“The government has directed the Ministry of Budget to also come up with additional support for the 2024 Budget to cover any gaps that may arise from the new minimum wage,” Idris stated.
“The aim is to establish a wage that benefits all Nigerians, including the Federal Government, sub-nationals, and the organized private sector.”
The President has committed to ongoing consultations with Organised Labour and its affiliates. Idris mentioned that the upcoming meeting is in response to the labour unions’ request during their previous meeting with the President.
“The President is eager to resolve the minimum wage issue promptly,” Idris said. “After Thursday’s meeting, the President will submit the final agreements to the National Assembly for legislative approval.”
Although the FEC did not discuss the exact figure for the new minimum wage, Idris emphasized that the President supports a wage increase that is sustainable and does not lead to inflation.
Meanwhile, ALGON President Aminu Mu’azu-Maifata has called for increased monthly allocations to the 774 local government areas to ensure they can meet the new minimum wage requirements once it is enacted.
Speaking in Lafia, Mu’azu-Maifata highlighted the importance of financial autonomy for local governments and the need to adjust the revenue sharing formula.
“Without revising the revenue sharing formula, no council in the country would be able to shoulder the new minimum wage,” he said. He expressed confidence in President Tinubu’s commitment to local government development and democratic processes.
Mu’azu-Maifata urged local government chairmen to leverage their autonomy to positively impact grassroots communities.
He praised the Supreme Court’s recent judgment granting financial autonomy to local governments and stressed its potential to enhance grassroots democracy and local governance.
“We must ensure that the autonomy is effectively implemented and that local councils deliver essential services to the people,” he stated.
