FG Gives Update On New Minimum Wage Payment
A recent analysis has highlighted that Nigeria’s minimum wage of N30,000 is the lowest compared to seven other selected African countries.
This finding underscores the economic plight of workers in Africa’s largest economy, where the current wage translates to a mere $20 per month at an exchange rate of N1,500 to a dollar, insufficient to purchase a half bag of rice under the current economic conditions.
In contrast, workers in Seychelles, Libya, Morocco, Gabon, South Africa, Mauritius, and Equatorial Guinea earn significantly higher minimum wages, with monthly take-home amounts of $456, $325, $315, $256, $242, $240, and $224 respectively.
According to BusinessDay, an increase from N18,000 to N30,000 in 2018, the Nigerian minimum wage has remained stagnant for six years amidst soaring inflation, which hit 31.70 percent in February, and food prices rising by 37.92 percent.
The labour unions have criticized the current minimum wage as unrealistic given the severe economic downturn and a 27-year high inflation rate.
The naira’s depreciation has further exacerbated the situation, with the local currency now trading at about N1,300/$, a stark decline from N400 to a dollar when the wage adjustment was made in 2018.
However, there is a glimmer of hope for Nigerian workers as President Bola Tinubu is expected to announce a new minimum wage on Workers’ Day, May 1, following the inauguration of a tripartite committee by Vice President Kashim Shettima in January.
This 37-member panel, representing various sectors, is tasked with reviewing and proposing a revised national minimum wage, potentially heralding a long-awaited relief for workers across the nation.
During zonal public hearings in Lagos, Kano, Enugu, Akwa Ibom, Adamawa, and Abuja, workers in the North-West requested N485,000; North-East, N560,000; North-Central, N709,000 (NLC) and N447,000 (TUC); South-West, N794,000; South-South, N850,000; and South-East, N540,000 by the NLC and N447,000 by the TUC.
However, the Adamawa and Bauchi state governments suggested N45,000 as the new minimum wage.
The NLC had on Friday said governors who fail to implement the new minimum wage when it becomes a law would be breaking the law, warning that it was working towards ensuring that tougher sanctions would be meted on such governors.
