FG Inaugurates Minimum Wage Committee: Here’s What You Should Know
The Federal Government of Nigeria inaugurated a 37-member committee on the national minimum wage on Tuesday, January 30, 2024.
With inflation at a 27-year high and the devaluation of the naira, which has lost over 90 percent since Bola Tinubu became President, many Nigerians have been pushed below the poverty line, sparking conversations on the upward review of the national wage.
Vice President Kashim Shettima, who inaugurated the committee, said that a timely report on the review is crucial to ensure the emergence of a new minimum wage.
What is the Minimum Wage?
According to Section 3(2) of the National Minimum Wage Act 2019, the national minimum wage is the total amount of money that an employer is required to pay the lowest-paid worker or employee on a monthly basis in their establishment. In Nigeria, the determination of the minimum wage involves a process that considers various factors. The National Minimum Wage Act establishes the legal framework for setting the minimum wage in the country.
In 2019, the Tripartite Committee on the National Minimum Wage was established, consisting of government representatives, organized labor unions, and the private sector. This committee reviewed and increased the minimum wage from ₦18,000 to ₦30,000.
Some of the newly inaugurated members charged with the responsibility of reviewing the current structure and proposing a new miminum wage include Minister of State for Labour and Employment, Nkeiruka Onyejeocha; Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. Others include the Minister of Budget Economic Planning, Atiku Bagudu; Joe Ajaero, President, Nigeria Labour Congress (NLC), among others.
History of Minimum Wage in Nigeria
Before the formation of the Nigeria Labour Congress (NLC) in 1978, there was no history of a structured national wage for workers. In 1981, Nigeria’s first elected President, Shehu Shagari, implemented the country’s first known minimum wage of N125 per month.
Eight years later, Adams Oshiomhole, then the deputy president of the NLC, spearheaded discussions on behalf of the union, resulting in an increase of the minimum wage to N250 in 1989. During the administration of General Abdulsalami Abubakar between 1998 and 1999, the minimum wage was further raised to N3000 per month.
While the minimum pay for workers has increased from ₦3000 to ₦5500, then ₦7500, and finally ₦18,000, which took effect in 2011, the value of the Nigerian naira continued to depreciate, making Nigeria’s minimum wage one of the lowest in the world. Several countries, including Congo with $154, Kenya with $140, Tunisia, Chad, and Ivory Coast with minimum wages over $100 per month, surpass Nigeria’s current minimum wage of N30,000 ($21.4).
