The Federal Government officially launched the tripartite committee on the national minimum wage on Tuesday, with Vice President Kashim Shettima inaugurating the 37-member panel at the Council Chamber of the State House in Abuja.
Comprising representatives from federal and state governments, the private sector, and organized labor, the committee is tasked with recommending a new national minimum wage for the country. Shettima emphasized the need for a prompt resolution, urging members to submit their reports early as the current N30,000 minimum wage is set to expire at the end of March 2024.
During his opening address, VP Shettima called for collective bargaining in good faith, stressed the importance of contract adherence, and encouraged consultations beyond the committee. The House of Representatives had moved in May 2017 to amend the National Minimum Wage Act, mandating a compulsory review every five years. The resulting Minimum Wage Act of 2019 empowered the committee to deliberate and propose an agreed-upon wage, subject to ratification by the National Assembly.
Although President Buhari had signed a minimum wage act approving N30,000 for federal and state workers in 2019, the discontinuation of fuel subsidy in May 2023 by President Bola Tinubu led to a surge in living costs. The government approved an additional NGN 35,000 wage award for six months starting September 2023 to mitigate the subsidy removal impact. However, organized labor deemed this a provisional solution and called for a comprehensive review in 2024.
The tripartite committee, chaired by former Head of the Civil Service of the Federation, Bukar Aji, aims to propose a “fair, practical, implementable, and sustainable” minimum wage. The inauguration followed months of organized labor agitation over the government’s delay in constituting the new national minimum wage committee, as promised during negotiations in October.
Government representatives in the committee include the Minister of State, Labour and Employment, Nkeiruka Onyejeocha; Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Minister of Budget Economic Planning, Atiku Bagudu; and Head of the Civil Service of the Federation, Dr. Yemi Esan, among others. Representatives from the Nigeria Governors Forum, Nigeria Employers’ Consultative Association, Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, National Association of Small and Medium Enterprises, Nigeria Labour Congress, and Trade Union Congress of Nigeria are also part of the committee.