President Bola Tinubu has signed the Minimum Wage Bill into law, concluding extensive negotiations between government authorities, labour unions, and the private sector. The journey towards this consensus was marked by significant proposals and counterproposals, reflecting the diverse economic interests and realities faced by stakeholders.
Initially, labour unions had proposed an ambitious new minimum wage of ₦494,000, while the government countered with an offer of ₦60,000. This considerable disparity led to a series of intense negotiations.
As discussions progressed, the workers revised their demand to ₦250,000, with the government adjusting its offer to ₦62,000. Ultimately, a consensus was reached on July 18, setting the new minimum wage at ₦70,000.
Minister of Information Mohammed Idris, speaking to State House correspondents after a pivotal meeting between government officials and labour leaders, expressed satisfaction with the agreement:
“We are happy to announce today (Thursday) that both the organised labour and the Federal Government have agreed on an increase on the ₦62,000 minimum wage. The new national minimum that Mr. President is expected to submit to the National Assembly is ₦70,000.”
The signing ceremony took place at the State House in Abuja, days after the National Assembly passed the Minimum Wage Act, 2019, which aimed to increase the national minimum wage from ₦30,000 to ₦70,000. The event was attended by a delegation from the National Assembly, led by the President of the Senate, Godswill Akpabio, along with several members of the House of Representatives.
Basheer Lado, the Special Adviser to the President on Senate Matters, heralded the move as a significant achievement: “The signing of the minimum wage bill into law by His Excellency, President Bola Ahmed Tinubu is both a promise kept and a demonstration of his people-centric governance model. Tinubu promised to pay a living wage to Nigerian workers during his electioneering campaigns, and he has kept that promise.”
The new ₦70,000 minimum wage will be subject to review every three years, ensuring that it remains responsive to the evolving economic landscape. Following the agreement, President Tinubu swiftly transmitted the bill to the National Assembly, where it was passed in a single day.
President Tinubu, who assumed office in May last year, emphasized the need for a sustainable approach to wage increases, acknowledging the pressures of the soaring cost of living. “You have to cut your coat according to the available cloth. Before we can finalise the minimum wage process, we have to look at the structure,” he stated during discussions with labour leaders.
