Federal Government Initiates Talks with Labour Unions for Wage Review
The Federal Government of Nigeria has disclosed plans to implement a new minimum wage starting April 1, 2024, as confirmed by the Minister of Information and National Orientation, Idris Mohammed. In an interview with PUNCH in Abuja, Mohammed revealed that the current minimum wage of N30,000 is set to expire at the end of March 2024, prompting negotiations between the government and labour unions for a revised wage structure.
The decision to introduce a new minimum wage comes in the wake of President Bola Tinubu’s removal of the fuel subsidy in May 2023. In response to this move, the government temporarily increased worker salaries to N35,000, acknowledging the economic impact of the subsidy removal.
Minister Mohammed emphasized that the upcoming wage review aims to replace the temporary relief and is scheduled to begin on April 1, 2024. He stated, “Certainly, there is a new wage regime that will come in on April 1, 2024. That is why these palliatives were targeted so they would cushion economic hardship before then.”
The government’s expenditure plans for 2024, 2025, and 2026 include a budget of N24.66 trillion for salaries, reflecting a commitment to addressing the needs of the workforce.
Labour unions, recognizing the legal requirement for a minimum wage review every five years, insisted on a formal wage review in 2024. The National President of the Nigeria Labour Congress, Joe Ajaero, highlighted the necessity for a comprehensive salary structure and emphasized ongoing negotiations between the government and labour unions.
A top official of the NLC confirmed the initiation of talks, stating, “By April 1, 2024, the current minimum wage will expire. We have all agreed to set up a national wage negotiation committee, and that the committee should comprise all parties.” Additionally, the Head of Information of the NLC, Benson Upah, affirmed that the new minimum wage is slated to come into effect next year, signifying a significant development in the ongoing discussions between the government and labour representatives.
