New Minimum Wage No Longer Feasible – Federal Government

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New Minimum Wage No Longer Feasible – Federal Government

The Federal Government may have dashed the expectation of millions of Nigerian workers as it declared that the proposed new minimum wage expected to be implemented in September was no longer feasible.

The Minister of Labour and Employment Chris Ngige revealed that the federal committee on the new minimum wage was yet to arrive at figures acceptable to both Labour and the Federal Government.

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Ngige told reporters that although the committee was expected to conclude work on the new minimum wage by the end of this month, the date was no longer feasible because the final document was yet to be completed.

I am the deputy chairman of the committee and I drive it. We have a timetable and we are expected to finish everything about it by the end of this August, but it is not attainable anymore because even in the committee, we have not agreed on any figure,” he said.

Ngige further revealed that state governors were the major reasons the new minimum wage date was no longer feasible. He said the governors were highly critical of the proposed minimum wage and were dragging feet on the matter.

We could not agree on a figure because of two reasons. One is that the state governors have not come up with a figure and the state governors are a critical constituent of this discussion. They have six governors in the committee, one from each geo-political zone.

The Governors Forum said they are still working on it and that was the last submission they made to us and the federal government team. We are working with the Economic Management Team and since the team dictates the economy of the country, they will take whatever the governors come up with and fine-tune it with that of the federal government committee. That is where we are” Ngige affirmed.

The Labour Minister further said the national minimum wage tripartite committee was also still at work and it is the result of that work that will enable the committee formulate a bill to send to the National Assembly for approval into law.

Not only did the Federal Government break the hearts of Nigerian Workers, it also broke the hearts of National Youth Corps Members all over the country who had been expecting a raise in their allowances as speculated in diverse quarters.

Ngige explained that the minimum wage committee had not concluded a new allowance structure for Corpse members because no recommendation regarding an increase in allowance had come to the Federal Executive Council.

“As a matter of fact, some ministries, such as Youth and Sports, my ministry, Women Affairs and Budget and Planning, have been asked to make our input. However, the important thing to note is that whatever increase that would be made on the allowances of NYSC members would be hinged on the envisaged new minimum wage.

The allowances of the NYSC persons will be on the same sliding scale with the national minimum wage, except that it is a top up. That is why today the national minimum wage is N18, 000, and the top up for NYSC members is about N1, 500, making it N19, 500.

This is the allowance the Federal government will give to them. Areas or persons and bodies or agencies where they do their primary assignments can also give them what they call special allowances and that is irrespective of this monthly stipend from federal government.

Their employers in their places of primary assignment can give them another top-up so that in some establishments you see them paying extra N10, 000 to the NYSC persons some are as generous as even giving N20, 000, which is about the same thing that they earn.” The Minister of Labour affirmed.

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