Implementation Of New Minimum Wage Likely To Be Delayed

The Nigeria Labour Congress disclosed recently that the implementation of the new minimum wage could be delayed, despite optimism that it could also be implemented by month’s end.

The labor group noted that adjustments must be made before the minimum wage can go into effect. However, a few states in the country have set up a committee to oversee the shift.

The president of Nigeria, Bola Tinubu signed a new minimum wage bill into law on the 29th of July, establishing a minimum wage of N70,000 ($45) for workers across Nigeria. This followed months of deliberation between the labor unions in Nigeria and the Nigerian government.

Prior to being signed, the new minimum wage had been approved on the 17th of July, after the Nigerian Labor Congress (NLC) warned of a possible month-long strike if the government attempted to deregulate the national minimum wage.

The NLC had gone on a single day strike in June, which saw to the complete halt of economic activities across the country, including the shutting down of the national grid. The one day protest led to the loss of N148.8 billion.

Since the signing of the bill, only seven of Nigeria’s 36 states including Kano, Kwara, Ogun, Borno, Jigawa, Ondo, and Abia have set up implementation committees for the recently approved minimum wage.

In an exclusive with the Punch, the Deputy President of Nigeria Labour Congress Political Commission, Prof. Theophilus Ndubuaku noted that there might be a minor delay in implementing the new minimum wage due to some formalities.

“In a real sense, signing the wage is just a small component of the main activity. There is something we call consequential adjustment. That involves the calculation of the minimum wage from level one, step one. From there, we will move from stage one to 13 all the way to level 16,” the union leader stated.

“So it is something that may take some time. Again, they are not going to compile them alone. There are templates for compiling it. But they must also carry us along. I believe you are aware there is a committee that is supposed to carry out the necessary adjustments. We expect it should be completed before the end of the month,” he added.