ABUJA (Sundiata Post) – The Federal Government has said the report of the tripartite committee on the new minimum wage reflects a balanced and realistic approach to addressing the myriad challenges facing the country’s workforce.
Minister of State for Labour and Employment, Nkeiruka Onyejeocha, made this known during a one-day retreat on ‘Labour reforms and the quest for living wage in Nigeria: A Focus on Legislative intervention,’ by the National Institute for Legislative and Democratic Studies (NILDS), for chairmen and members of the joint Senate and House of Representatives Committees on Employment, Labour and Productivity in Abuja, yesterday.
She said submissions were a blueprint for actionable reforms that would drive sustainable improvements in labour conditions across the country.
Onyejeocha restated the administration’s resolve to transform the labour landscape in Nigeria, ensuring that every worker is respected, protected, and fairly compensated.
She tasked the lawmakers to pass bills that reflect the yearnings of the country’s labour force across all sectors, foster productivity, and growth among the workforce, and also commensurably punish offenders and violators of labour laws.
“The government of Nigeria, under the leadership of President Bola Tinubu is unwavering in its dedication to ensuring that all workers are treated with dignity, and that they work in safe environments, and earn a living wage. Our vision is clear; to create a labour market that is fair, equitable, and capable of sustaining the aspirations of every Nigerian worker.
“Central to our efforts is the work of the tripartite committee, comprising the government, the organised private sector and the organised labour, which has diligently engaged the stakeholders on the critical issue of a new national minimum wage.
“The committee’s comprehensive submissions to Mr. President reflect a balanced and realistic approach to addressing the myriad challenges faced by our workforce. These submissions are not just recommendations, they are a blueprint for actionable reforms that will drive sustainable improvements in labour conditions across the country.
“One of the key initiatives of the Federal Ministry of Labour and Employment is the Labour and Employment Empowerment Programme (LEEP). The LEEP embodies our holistic approach to labour reforms, with a specific pillar dedicated to labour reforms and labour compliance
Onyejeocha, while acknowledging the role of legislative intervention, underscored the need for the standing committees saddled with the responsibility of legislative oversight, and indeed, the Parliament, to enact laws that protect and empower workers.
Meanwhile, Senate President, Godswill Akpabio, has insisted that state governments have enough resources to pay the new minimum wage.
He insisted that all the parties to the negotiation should abide by the agreement noting that state governors no longer have any excuse to complain about payment of the new minimum wage going by the improvements in the revenues which accrued to them on a monthly basis.
“In the recent past, even some segments of the public sector, especially at state level, failed to implement the national minimum wage. They either failed to domesticate the legislation, or failed to honour it after domestication through the payment of percentage salaries for various reasons.
“Now that it is on record that all states have access to more monthly allocations as a result of the removal of fuel subsidy, it is expected that all states will abide by the new minimum wage when finally determined and legislated.”
Akpabio, represented by Senator Diket Plang, chairman of Committee on Labour, Employment and Productivity, said the significance of the retreat had further underscored the possible legislative interventions in redressing the intractable and seemingly endless conversations around labour issues in the country.
“The significance of the minimum wage debate is pertinent in a number of ways, these include; shielding workers from unreasonably low compensation, preventing employers from exploiting their workers and providing workers with adequate income for food, shelter, clothing, healthcare, transportation and other essential needs, amongst many other benefits.
“There are always two sides of a coin. In other words, despite its advantages, a minimum wage also has its disadvantages.
“Some of the main concerns raised by opponents of a minimum wage include; job losses, particularly for low-skilled workers, because employers often respond to payment of higher wages by reducing their workforce.
“It has also been argued that increased minimum wage can lead to inflation, as businesses may pass on the higher labour costs to consumers in the form of higher prices for goods and services. It can also contribute to rising living costs amongst many other concerns.
“It is important to note that both the proponents and antagonists of minimum wage have their points, which seem generally valid and compelling.
“However, adding contexts to it is pertinent for obvious reasons. One, from a comparative perspective, there is no one-size-fits-all approach to the question of minimum wage. There are notable variations across countries.
“While some have a unified minimum wage system determined only by the central government, there are a few countries with multiple minimum wage systems, where subnational governments can also legislate.”
Akpabio observed that only 8 per cent of the nation’s population would be affected by the minimum wage payment and the private sector workers would be worst hit when implemented.
“Nigeria’s labour market has two segments, namely the public and private sectors. However, the public sector workers are the most affected by increases in the minimum wage for two main reasons.
“First, it is not proper for the government to violate its own law. Second, nearly all public-sector workers are unionised. Violations can therefore be resisted and counterproductive.
“Two, the majority of Nigerians are not directly affected by changes in the minimum wage mainly because 92.3 percent of the working age employed population work in the informal sector, mostly as farmers, traders, artisans or providers of services.
“Conversely, only about 8 percent of Nigerians would benefit from a minimum wage increase, all other things being equal. Unfortunately, “all other things” have not always been equal.
“Some components of this 8 percent who work in the private sectors, especially in services, hospitality, small private clinics and non-profit organisations earn below the minimum wage.
“This is partly because many of them are not sufficiently organized and unionized. As such, they lack a veritable platform for effective organisation and resistance.
“For instance, how will the new minimum wage, even if eventually resolved, affect the majority of Nigerians not directly covered by it? How will the informal sector respond to it? In what ways could it impact employment, income and inequality across the board and beyond the labour force? These are relevant posers that we cannot completely ignore.
“My reference to the above challenges is not to denigrate the ongoing demand by labour for a new minimum wage, but to serve as a reminder of the complexity of the issues in Nigeria.”
The Speaker of the House of Representatives, Tajudeen Abass, noted that the labour represents a critical component and stakeholder in Nigeria’s national development architecture that deserves the best treatment in the true sense of the term.
He was represented by the Chairman, House of Representatives Committee on Labour and Productivity, Adegboyega Adefarati.
Abass identified poor remunerations as one of the main causes of corruption in the country.
“Poorly paid workers are highly susceptible to corrupt inducements and pressures.”
He said the 10th National Assembly is firmly resolved to see to the expeditious resolution of the new minimum wage matter as soon as possible.
Abass said: “We will do our best to give it (minimum wage bill), expeditious hearing and passage whenever we receive the proposal from the executive.”
