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Federal, State Gov’ts Commence Discussions on Minimum Wage Review

Deliberations concerning an enhanced minimum wage are underway between the Federal Government and various states, marking a pivotal step in shaping future compensation for workers.

The discussions’ outcomes will provide vital guidance to the Minimum Wage Review Committee in formulating an updated wage structure for employees.

However, the government has made it clear that it is not supportive of an across-the-board 100% wage increase.

Clarifying the context, Ajuri Ngelale, the spokesperson for President Bola Ahmed Tinubu, as report by The Nation, emphasized that the reference pertains solely to an enhancement of the minimum wage, not an across-the-board doubling of all workers’ salaries.

Ngelale also urged for patience, allowing the Minimum Wage Review Committee to draw its conclusions as negotiations progress between federal and state entities.

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Ngelale confirmed the consensus that exists in favor of an upward revision of the national minimum wage. He stated, “What we know now is that there is consensus that an upward review of the national minimum wage is now in order.”

Former President Muhammadu Buhari enacted the new Minimum Wage Bill of N30,000 on April 18, 2019. While some states have yet to implement the minimum wage, others, like Imo, have recently raised it to N40,000.

Prior to the increase under the Buhari administration, the minimum wage stood at N18,000.

In regard to measures to offset the withdrawal of petrol subsidy, Ngelale reaffirmed President Tinubu’s commitment to the outlined plans aimed at alleviating the impact on Nigerians.

Ngelale stated, “The President has given a very concrete implementation timeline on the robust set of relief package he has detailed in his most recent speech.”

He added that various initiatives, such as agricultural interventions and support for Small and Medium Scale Enterprises (MSMEs), will be rolled out through the first quarter of 2024.

Reforms related to Compressed Natural Gas (CNG) supply and demand will span multiple phases, concluding between the second quarter of 2024 and the first quarter of 2025.

During a recent broadcast, President Tinubu unveiled a range of relief packages aimed at cushioning the impact of petrol subsidy removal.

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These initiatives include injecting over N275 billion to bolster the manufacturing sector and MSMEs. Additionally, talks are ongoing with labor unions regarding the potential salary adjustment.

President Tinubu assured workers, saying, “Your salary review is coming.” He also emphasized that budget provisions would be made once terms for the new minimum wage and general upward review are agreed upon, thus facilitating immediate implementation.

In response to the withdrawal of the petrol subsidy, labor unions have been advocating for higher wages, with some chapters even requesting N200,000.

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