January 10, 2025

Shettima Establishes 37-Member Committee for Minimum Wage Implementation

COMITEE

Vice President Kashim Shettima led the inauguration of a 37-member tripartite committee on the national minimum wage at the Council Chamber of the State House in Abuja on Tuesday. The committee, encompassing representatives from federal and state governments, the private sector, and organized labor, is tasked with recommending a new national minimum wage for Nigeria.

In his opening address, Vice President Shettima stressed the urgency of arriving at a resolution promptly, urging members to submit their reports early as the current N30,000 minimum wage is set to expire at the end of March 2024. He emphasized the crucial need for a timely submission to ensure the emergence of a new minimum wage.

VP Shettima encouraged collective bargaining in good faith, underlining the importance of contract adherence and suggesting consultations outside the committee for comprehensive deliberations.

The Minimum Wage Act of 2019, signed by former President Muhammadu Buhari, grants the committee the authority to deliberate and propose an agreed wage, subject to legislative scrutiny by the National Assembly. The act, which approved N30,000 for both federal and state workers, is due for a compulsory review every five years.

President Bola Tinubu’s announcement of fuel subsidy discontinuance on May 29, 2023, led to a significant rise in the general cost of living. In response, the government approved an additional NGN 35,000 wage award for six months, starting September 2023

Despite the administration’s approval of an additional NGN 35,000 wage award for six months starting September 2023 to mitigate the impact of subsidy removal, organized labor asserted that this was merely a temporary solution and called for a comprehensive review of the minimum wage in 2024. Bukar Aji, a former Head of the Civil Service of the Federation, is presiding over the panel and affirmed at the inauguration ceremony that its members would formulate a “fair, practical, implementable, and sustainable” minimum wage.

Tuesday’s inauguration comes after months of agitation from organized labor expressing concerns over the Federal Government’s failure to inaugurate the new national minimum wage committee, as promised during negotiations last October.

Government representatives include the Minister of State, Labour and Employment, Nkeiruka Onyejeocha, representing the Minister of Labour and Employment; Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, represented by the Ministry’s Permanent Secretary, Mrs. Lydia Jafiya.

Other government representatives include Atiku Bagudu, Minister of Budget Economic Planning; Dr. Yemi Esan, Head of the Civil Service of the Federation; Dr. Nnamdi Maurice Mbaeri, Permanent Secretary, GSO. OSGF; and Ekpo Nta, Chairman/CEO, NSIWC – Member/Secretary.

Representatives from the Nigeria Governors Forum include Mohammed Bago of Niger State, representing the North Central; Sen. Bala Mohammed, Governor of Bauchi State, representing the North East; Umar Dikko Radda of Katsina State, representing the North West; Prof. Charles Soludo of Anambra State, representing the South East; Sen. Ademola Adeleke of Osun State, representing the South West; and Otu Bassey of Cross River State, representing the South-South.

Members from the Nigeria Employers’ Consultative Association include Adewale-Smatt Oyerinde, Director-General, NECA; Mr. Chuma Nwankwo; Mr. Thompson Akpabio, along with representatives from the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, which include Asiwaju Michael Olawale-Cole, National President; Ahmed Rabiu, National Vice President; and Chief Humphrey Ngonadi, National Life President.

The National Association of Small and Medium Enterprises is represented by Dr. Abdulrashid Yerima, President & Chairman of the Council; Hon. Theophilus Nnorom Okwuchukwu, Private Sector representative; and Dr. Muhammed Nura Bello, Zonal Vice President, North West. Members from the Manufacturers Association of Nigeria include Mrs. Grace Omo-Lamai, Human Resource Director, Nigerian Breweries; Segun Ajayi-Kadir, Director-General, MAN; and Lady Ada Chukwudozie, Managing Director, Dozzy Oil and Gas Limited.

On the side of organized labor, the Nigeria Labour Congress is represented by Joe Ajaero, President, NLC; Emmanuel Ugboaja; Prince Adeyanju Adewale; Ambali Akeem Olatunji; Benjamin Anthony; and Prof. Theophilus Ndukuba. Members from the Trade Union Congress of Nigeria include Festus Osifo, President, TUC; Tommy Etim Okon, Deputy President I, TUC; Kayode Surajudeen Alakija, Deputy President II; Jimoh Oyibo, Deputy President III; Nuhu Toro, Secretary-General; and Hafusatu Shuaib, Chairperson Women Comm.

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