Nigerian Workers Need Fair Adjustments to Minimum Wage, Asserts Fashola
Ensuring Fair Compensation for Nigerian Workers
Former Minister of Works, Babatunde Fashola, has underscored the necessity for Nigerian workers to receive adequate adjustments to cope with the escalating cost of living in the country. In his recent article titled ‘Minimum Wage Review – My Take Away’, Fashola articulated the pressing need for fair compensation amidst economic challenges.
Fashola pointed out the implications of rising living costs on workers across all income brackets, emphasizing the importance of adjustments in both wages and salaries. He critiqued Section 4(1)(b) of the National Minimum Wage Act 2019, which exempts establishments with fewer than 25 employees from adhering to the Act’s minimum wage provisions. This exemption, according to Fashola, raises significant concerns about the Act’s effectiveness in safeguarding vulnerable workers employed in small businesses.
As a Senior Advocate of Nigeria (SAN), Fashola highlighted the constitutional mandate of the National Assembly to set a national minimum wage under item 34 of the Exclusive Legislative list. He clarified the distinction between wages, paid based on hours worked, and salaries, which are fixed amounts paid periodically. Fashola raised constitutional concerns over the legislative prescription of a monthly minimum wage of ₦30,000, which he argued may exceed the National Assembly’s jurisdiction, primarily concerned with legislating hourly wages.
The former governor emphasized the need for a comprehensive approach to minimum wage legislation, suggesting the inclusion of a framework to review salaries alongside wages. Such measures, he believed, would not only address the current cost-of-living challenges but also foster national productivity and economic prosperity.
Recent negotiations on a revised minimum wage have been contentious, culminating in an indefinite industrial action by organized labour in June 2024. Labour unions have cited the inadequacy of the current ₦30,000 minimum wage in light of inflation and policy changes, advocating for a more realistic wage adjustment.
President Bola Tinubu’s administration inaugurated a tripartite committee to negotiate a new minimum wage, with initial proposals ranging significantly. Despite ongoing negotiations and government efforts to meet labour demands, including an offer of ₦62,000, an agreement has yet to be reached between stakeholders.
In his Democracy Day address on June 12, 2024, President Tinubu reassured organised labour of imminent executive action on a new national minimum wage bill, expected to be submitted to the National Assembly for approval.
The discourse on minimum wage reform in Nigeria underscores the complexities of economic policy and the imperative of balancing workers’ rights with sustainable economic practices. As discussions continue, the focus remains on achieving equitable compensation that supports workers’ livelihoods amid evolving economic realities.
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This blog content summarizes Babatunde Fashola’s perspective on the minimum wage issue in Nigeria, highlighting constitutional implications, ongoing negotiations, and the broader impact on workers’ welfare amidst economic challenges.
