- States with Financial Capacity Will Pay – Chair Govs’ Forum
- As Presidency denies Buhari endorsement
By Abdul Alli
President Muhammadu Buhari has reiterated his commitment to pay the newly approved minimum wage, saying he was committed to ensuring that the nation’s workers get a new minimum wage. As the Chairman of the Governors’ Forum, the Executive Governor of Zamfara State, Abdulaziz Yari also cleared the air that only states with the financial capacity will be able to do so. Adding that, with the President’s approval only means that Federal Government workers will be paid N30,000 as minimum wage.
The president who spoke at the State House while receiving the report of the Ama Pepple-led tripartite committee which recommended N30,000 as the country’s new national minimum wage.
Pepple, a former Head of Service of the Federation, said the committee carefully weighed the demand of the workers which was predicated on the high cost of living occasioned by unfavourable exchange rate and rising inflation over the past few years, among other factors.
“After carefully weighing these critical factors and bearing in the mind the overriding interest of the economy, the committee noting the offer of N24,000 by the federal government, is recommending an increase in the existing National Minimum Wage from N18,000to N30,000,” she said.
The former Head of Service of the Federation said the implementation of the recommended minimum wage will boost the purchasing power of workers, increase consumption expenditure and stimulate business and overall economic growth.
Pepple said the committee, which was constituted on November 27, 2017 by the president, has also produced a draft National Minimum Wage Bill 2018 for consideration by government.
“We strongly believe that the enactment of the draft bill into law is very critical to the operation and future reviews of the National Minimum Wage,” she said.
Responding, President Buhari, while restating his commitment to a new minimum wage act, said prices of key consumables had increased and that the most vulnerable of the country’s workers were struggling to make ends meet.
“Since 2011, many changes have taken place. Nigeria rebased its GDP to become the largest economy in Africa. We reported very strong GDP growth rates and exceptional performance of our capital markets. However, these reported successes did not flow into the pockets and homes of majority of Nigerians.
“In the last three years, we focused on correcting this deficiency. We are working to create a diversified and inclusive economy. We are pushing to clear pension arrears owed to our retired workers with the limited resources available to us,” he said.
According to the president, “The Committee Chairman highlighted some of the challenges encountered during your deliberations, especially as it relates to having a consensus position acceptable by all parties.
“I understand, on the government side, the concerns raised were around affordability – that today many states struggle to meet their existing salary requirements. On the side of labour, the points raised focused on the need for any increase to be meaningful.
“In a way, both arguments are valid. I want to assure you all that we will immediately put in place the necessary machinery that will close out these open areas. I am fully committed to having a new National Minimum Wage Act in the very near future.”
He appealed to workers and their leaders to not allow themselves to be used as political weapons.
“As the Executive Arm commences its review of your submission, we will continue to engage you all in closing any open areas presented in this report. I therefore would like to ask for your patience and understanding in the coming weeks,” he said.
In the same vein, the President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, said every member of the tripartite committee signed the report.
He said the agitation for the national minimum wage was not connected to the forthcoming general elections in the country.
On the capacity of state governments to pay the N30,000, he said “the N18,000 was being paid from 2011 to 2015 until when most of the states emptied their treasuries before elections.
“It was coincidence. In 2011, it was almost at the same time. At whatever time the minimum wage is due, it is our responsibility to raise the issue,” he said.
It would be recalled that the Chairman of Governors’ Forum, the Governor of Zamfara State, Abdulaziz Yari had told Nigerians that some states may not have the financial muzzle to shoulder the N30,00 minimum wage, he said there are some states that their IGRs are very low while the president’s endorsement means that federal civil servants would earn N30, 000 as minimum wage, it may not be the same for state workers as governors have said they do not have the resources to pay the amount.
The source added that the governors’ forum did not insist that all states must pay N22, 500 but said those who have capacity to pay N30, 000 minimum wage should go ahead and do so.
According to him, “it was their position that since the percentage of salaried workers is not more than 5% of the total working population, their position must not just reflect a figure, but also a sustainable strategy based on ability and capacity to pay.”
The Presidency however denied that the President Muhammadu Buhari’s remarks when he received the report of the Tripartite Committee on the Review of National Minimum Wage was misinterpreted by the media.
According to a source who close to the authority on anonymous level said, “The president’s speech at the event was immediately made available to the media and nowhere indicated that the president endorsed N30,000 Minimum wage.
“It is not the duty of the president only to endorse a new national minimum wage. The process involves the Federal Executive Council (FEC), the National Economic Council (NEC) and the National Assembly.
“It is imperative for us to always avoid misinterpreting a written speech,’’ he added.
Recall that President Buhari had pledged that the Federal Government would soon transmit an Executive bill (on National Minimum Wage) to the National Assembly for passage within the shortest possible time.
He said: “Our plan is to transmit the Executive bill to the National Assembly for its passage within the shortest possible time.
“I am fully committed to having a new National Minimum Wage Act in the very near future.’’
“Let me use this opportunity to recognise the leadership of the organised labour and private sector as well as representatives of State and Federal Governments for all your hard work.
“The fact that we are here today, is a notable achievement.
“As the Executive Arm commences its review of your submission, we will continue to engage you all in closing any open areas presented in this report.
“I, therefore, would like to ask for your patience and understanding in the coming weeks.”
The President, however, enjoined the leadership of the labour unions as well as the Nigerian workers to avoid being used as political weapons.
“May I therefore, employ workers and their leaders not to allow themselves to be used as political weapons,’’ he said.