President Bola Tinubu has approved a new minimum wage of N70,000 for Nigerian workers, with a commitment to review the national minimum wage law every three years.
Additionally, President Tinubu pledged to explore measures to assist the private sector and sub-national entities in meeting the minimum wage requirements.
These announcements were made during a meeting with leaders of the Trade Union Congress (TUC) and the Nigeria Labour Congress (NLC) on Thursday in Abuja.
This marks the second time the parties have met within a week.
Private Sector Can’t Afford N70,000 Minimum Wage Alone
The Organised Private Sector (OPS) has appealed to the government for assistance in implementing the newly agreed N70,000 minimum wage, citing concerns about its ability to bear the financial burden alone.
The OPS expressed its inability to pay the new wage without substantial government support, following the recent agreement between President Bola Tinubu’s administration and labour unions.
The Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) accepted the proposal on Thursday, but the OPS is now seeking help to mitigate the potential financial strain on private sector businesses.
Adewale-Smatt Oyerinde, Director General of the Nigeria Employers’ Consultative Association (NECA), emphasized the need for government support to ensure a smooth implementation of the new minimum wage.
According to Oyerinde, the new wage will impose a significant financial burden on private sector businesses, and without government assistance, many companies may struggle to stay afloat.
The OPS is urging the government to provide incentives and support to help businesses absorb the increased cost of the new minimum wage.
“While we appreciate the President for resolving the immediate National Minimum Wage issue, we also acknowledge his crucial commitment to assist sub-national entities and the Organised Private Sector in meeting the new wage requirement,” Oyerinde stated.
He stressed that without government intervention, many businesses might struggle to implement the new wage policy.
