Tinubu and government remain silent on minimum wage

• FG approves N370 billion for states, FCT to buy buses

• N50,000 per 100,000 families in each state

By Muideen Olaniyi, Baba Martins (Abuja) & Peter Moses (Lagos)

President Bola Ahmed Tinubu and governors of the 36 states of the federation yesterday remained silent on the issue of minimum wage following a meeting of the National Economic Council (NEC).

Millions of Nigerians and members of the trade union movement had been expecting the federal and state governments to take a stand on the issue, which has been dragging on since the removal of fuel subsidies on May 29, 2023, the day Tinubu came to power, and the expiration of the N30,000 minimum wage agreed in 2019.

The NEC meeting, statutorily chaired by Vice President Kashim Shettima, was held yesterday in the presence of President Tinubu, a development that has raised hopes among keen observers of the developments that the threshold for the expected new minimum wage will be lifted.

Recall that the 37-member Tripartite Committee on National Minimum Wage, headed by a former Head of Service of the Federation, Bukar Aji, submitted its report to President Tinubu a few weeks ago, after about five months of sessions.

During his speech on the occasion of Democracy Day, June 12, 2024, President Tinubu had said that a consensus had been reached and a proposal would be submitted to the National Assembly.

But the unions hit back at the president, saying they were not aware of any agreement.

Around the same time, the Nigeria Governors Forum (NGF) rejected the N62,000 minimum wage previously proposed by the federal government, saying some states would have to borrow to pay salaries if the amount was implemented.

Currently, the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) are insisting on a minimum wage of N250,000.

On Tuesday, the Federal Executive Council (FEC) dropped the note regarding the new minimum wage planned for the country’s workers.

The Minister of Information and National Guidance, Mohammed Idris, said this was necessary to enable the President to consult more with other stakeholders on the issue as it involves local governments, states, federal government and the organized private sector.

The latest development

After the NEC meeting held yesterday at the Presidential Villa in Abuja, there was no mention of the minimum wage as governors who briefed the press did not respond to questions.

Instead, President Tinubu approved a “one-off” allocation to states and the Federal Capital Territory (FCT) of N10 billion for the purchase of buses and CNG “revival” programme.

This was part of a new intervention called the “National Construction and Household Support Program”.

In a statement, Presidential Spokesperson, Ajuri Ngelale, said the package includes “provision of additional grants of N50,000 to 100,000 families per state for three months, as well as provisions for trade unions and organizations of civil society.

According to him, there would be “a deployment of N155 billion for the purchase and sale of assorted food items for distribution across the country.”

The statement said the program is expected to boost agricultural productivity, strengthen the economy by creating opportunities in the real sectors of agriculture, manufacturing and construction, as well as provide urgent economic relief to Nigerians.

He said road infrastructure projects, such as the ongoing Lagos-Calabar Coastal Highway, and the Trans-Saharan Highway, which connects Enugu, Abakaliki, Ogoja, Benue, Kogi, Nasarawa and Abuja, would be prioritized.

President Tinubu also approved full financing of the counterpart of the Port Harcourt-Maiduguri railway, which will traverse Rivers, Abia, Enugu, Benue, Nasarawa, Plateau, Bauchi, Gombe, Yobe and Borno states, as well as the Ibadan-Abuja segment of the Lagos-Kano standard gauge railway, which will traverse Lagos, Ogun, Oyo, Osun, Kwara, Niger, Abuja, Kaduna and Kano.

“The Sokoto-Badagry road project is of particular priority because of its importance as some of the states it will pass through are strategic to the agricultural sustainability of the nation,” the statement said.

Addressing the governors at the NEC meeting, President Tinubu urged them to work together to meet the needs of the citizens, saying he was ready to provide the necessary support to ensure that Nigerians were relieved of the hardships.

“Our states must work together to implement the crucial reforms required of us to meet the needs of our populations. Time is humanity’s most precious commodity. We never have enough. It’s getting late.

“We are ready to provide solar-powered irrigation facilities to support our farmers through the seasons, but now we need to produce. We need to produce the food that our people eat, and that will require coordination and intentionality among members of the National Economic Council (NEC).

“Nothing we do is more important than producing high-quality food that our people can eat, buy and sell. We create jobs in its production. And that’s before generating wealth by exporting the surplus. It is not beyond us to achieve this goal for Nigerians.

“What support do you need from me and in what form?” I’m ready to bring it to you. But we have to get results. We must achieve our goals at all levels. Please let us know your consultations and findings within seven days,” President Tinubu said.

On the other hand, after their meeting which began on Wednesday evening and continued until the early hours of Thursday, the governors said they had agreed to “continue to engage with key stakeholders to reach a mutually acceptable solution.”

This was revealed in a statement signed by the NGF’s acting media director, Ahmed Salihu.

They also assured Nigerians and unions that a better minimum wage would result from the ongoing negotiations.

Daily confidence recalled that at a similar meeting of the NEC in August 2023, the Federal Government approved a grant of N5 billion to be given to each of the 36 states of the federation for the purchase of grains as well as five trucks of rice to each State as a palliative to cushion the effect of the removal of fuel subsidies.

The NEC also approved the distribution of 40,000 bags of maize for distribution to states.

But months after the announcement, many states sparked public outcry, with some residents saying they had not received palliatives, while others said what they had received was barely enough to care for family for a day.

Speaking on Trust TV’s Daily Politics programme last night, a public commentator, Hon. Ikenna Azomchine criticised the approach of the Federal Government to alleviate the sufferings of Nigerians.

He said palliatives would never solve the problems of Nigerians, saying the Tinubu administration must come up with a deliberate policy to address hunger and insecurity.