By Deborah Afere
The National Assembly leadership emphasized its determination on Monday to get the approval of the new minimum wage law for Nigerian workers when it is forwarded to President Bola Tinubu’s administration.
Senator Godswill Akpabio, President of the Senate, and Speaker Tajudeen Abbas made the assurance in Abuja at the start of a one-day retreat on ‘Labour reforms and the quest for a living wage in Nigeria:
A Focus on Legislative intervention’ organized by the National Institute for Legislative and Democratic Studies (NILDS) for Chairmen and Members of the joint Senate and House Committees on Employment, Labour, and Productivity.
In his keynote address, Senator Akpabio, who frowned at the failure of some Subnational Governments to implement the current N30,000 national minimum wage, argued that with increased monthly allocations from the federal purse due to the removal of fuel subsidies, expressed optimism that “all States will abide by the new minimum wage when finally determined and legislated.
“While acknowledging that the dynamics of determining the minimum wage vary by country, Senator Akpabio stated that Nigeria has its own unique rules and regulations that govern the national minimum wage. “A brief overview of the Nigerian situation will help to clarify this perspective.
One, like all other countries in the globe, Nigeria’s labor market is divided into two sectors: public and private. However, public sector workers are disproportionately affected by minimum wage rises for two reasons.
First, it is improper for the government to violate its own laws. Second, almost all public sector employees are organized. Violations can so be opposed and counterproductive.Changes in the minimum wage have no direct impact on the majority of Nigerians (92.3%) who work in the unorganized sector. A rise in the minimum wage will help just 8% of Nigerians, primarily those employed in the private sector.
But because there is a dearth of organization and unionization within this group, many of them make less than the minimum wage. Because the federal government no longer provides gasoline subsidies, states now receive higher monthly allotments, which allows them to enact new minimum wages.
The Nigerian government recognizes the difficulty of the situation and the requirement for a living wage that rises in line with living expenses. Even increasing the present minimum salary of 30,000 Naira may not be sufficient, as it is deemed unfeasible.
In an effort to address the minimum wage issue, the government has organized stakeholder meetings and is dedicated to finding sustainable solutions to economic problems. The Speaker of the House of Representatives highlights how crucial a livable wage is to combating corruption and advancing the development of the country.