FG has fixed a date to deliberate on minimum wage With Labour Unions.
NewsOnline Nigeria reports that Information and National Orientation Minister Alhaji Mohammed Idris has stated that President Bola Tinubu Federal Government will open talks with Labour on the new minimum wage in March.
This Nigeria news platform understands that Idris further reiterated President Bola Tinubu’s commitment to workers’ welfare, urging the Nigeria Labour Congress (NLC) and Nigerians to be patient with the administration.
ALSO: NLC Expects Tinubu To Commence Minimum Wage Payment In March 2024 – Ajaero
The minister spoke at the 21st Daily Trust Dialogue and presentation of 2023 African Award of the year in Abuja.
The dialogue, with the theme “Tinubu’s Economic Reforms: Gainers and Losers,” was organised by the Media Trust Group.
At the forum, NLC President Joe Ajaero urged the Federal Government to review policies that are inflicting hardship on Nigerians.
Idris highlighted efforts by the administration to mitigate the impact of the fuel subsidy removal.
He recalled that when the fuel subsidy was removed, the President initially promised to pay N25,000 wage award to workers to cushion its effect.
Idris said: “But labour was not comfortable. We entered into negotiation with the Labour and after long discussion with them and President Tinubu, we arrived and agreed at N35,000 which was accepted.
“And the President said the N35,000 will be paid for six months to cushion the effects of the removal of fuel subsidy. That would be from September 2023 to February 2024.
“So, after the payment of wage award for six months; in March, the government and labour will come together again to deliberate on a new minimum wage for workers.”
He added: “However, it is important for Nigerians to understand the intention of President Tinubu to address the welfare and wellbeing of all Nigerians. I know it is not easy, but Nigerians will be better for it.
“I want to call on Nigerians to give President Tinubu the time to make things right for the country.”
Idris said the President has a vision to provide succour to Nigerians, revamp the economy and return the country to prosperity.
He said said some of the palliative measures initiated by the Federal Government were being implemented, despite initial constraints, adding that governors now get about 50% of what they were getting from the Federal Government to tackle the effects of fuel subsidy removal.
NLC to Tinubu: review policies to reduce hardship
Urging the President to review his policies, Ajaero maintained that the removal of petrol subsidy, naira devaluation and other economic decisions of the government had contributed to inflation, diminishing purchasing power and job losses.
He said the review of these policies was essential to make them more effective and sustainable.
The NLC President said any reform that does not deliberately reduce the cost of governance in Nigeria by at least 50 per cent was deceptive.
Ajaero said: “Thus far, the economic policies of the Tinubu administration, largely driven by neo-liberal principles, have sparked mixed reactions. While some measures may attract foreign investment and provide immediate fiscal relief, they come with significant socio-economic consequences.
“The removal of petrol subsidy, Naira devaluation, and other measures contribute to inflation, reduced purchasing power, and job losses. The expansion of foreign exchange allocation and privatization efforts may benefit specific groups, but historical precedents raise concerns about their long-term success.
“The cash crunch, whether intentional or not, poses challenges for citizens. A holistic overhaul of these policies is essential to make them more effective and sustainable.”
Ajaero urged the Federal Government to seek creative ways of reducing hardship among poor Nigerians, adding that it should support Micro, Small and Medium Enterprises, boost agricultural sector, encourage cottage industries, pay workers a living wage to encourage productivity, provide incentives for struggling businesses in the organized private sector.
He said government should get public-owned refineries working to provide cheaper petroleum products, pursue the CNG alternatives, increase budget effectiveness, grow the domestic economy and tackle corruption.
Ajaero said: “Our nation is in dire straits and it is only by the leadership exhibiting more patriotism and thinking more of the citizens that they can craft policies that will lift our nation out of the doldrums. The world Bank, as unreliable as their data is on developing nations, has predicted a 3.3% growth in our economy this year.
“We just hope it is real growth and not that which is driven by the devaluation of the Naira. However, we can grow faster than this if we learn as a nation to put our food where our mouth is. Listening to the IMF and World Bank has never helped us and will never help us.
“Our destiny is in our hands and we can take deliberate and sustained steps to support our real sectors, nurse and encourage them to grow. “It will get hard before it gets better” is a story we have heard over and over but the reality is that it has continued to get worse.”
Ajaero added: “Nigerians demand concrete, transparent and visible measures to arrest the continuous slide into deeper economic despondency, stabilize it, then begin a push back and grow our economy.”
“Let us grow our economy by putting our people once again at the centre of our economic policies and governance. That is why we are worried that our fears concerning the neo-liberal policies of the government are becoming manifest. The spate of borrowings leveraging on future sales of our resources not only destroys our today but mortgages the future.
“The rate of poverty has increased tremendously, increasing desperation, suicide and “Japa” have all become the lot of the masses. Politicians are inflating the budget to feather their nests and purchase luxury vehicles and items to live cozily to the detriment of our people and dear nation. Anybody that thinks this will continue without consequences is dwelling on illusion because it is clearly unsustainable.
“Any reform that does not deliberately reduce the cost of governance in Nigeria by at least 50% is deceptive. Any policy that awards humongous benefits to those in government; allocating scarce public resources to live in opulence, build mansions, buy luxurious cars, treat themselves abroad while Nigerians die over common ailments in hospitals here, maintain long convoys, receive prayer alerts and all manners of spurious allowances while our people can barely scratch a survival can only be summarised as voodoo.
“Unfortunately, we do not see courage in actions that pillage the people; rather we see cowardice in bowing to the pressures of foreign interests (IMF and World Bank) against that of your own people. That is not what reforms look like, but it is exactly how the path to deforming a people and a nation looks like. We therefore, strongly say that Tinubu’s economic policies have thus far deformed Nigerian workers, masses and indeed, the nation’s economy.”
The Labour leader urged government to expedite the process for negotiating the new national minimum wage for workers.
He said: “We urge the Nigerian Government to expedite the process for negotiating the new national minimum wage, which should reflect the real cost of living, thus approximating to a living Wage for Nigerian workers.
“Elimination of wages that enforce and validate poverty underpins the President’s Renewed Hope Agenda. The case for a Living Wage is huge with deep positive multipliers for our traumatised economy.
Former Director-General of the Abuja Chamber of Commerce and Industry (ACCI), Dr Victoria Akai, said government policies were aimed at repositioning the economy in the long-run.
However, he acknowledged that inflation was biting and the removal of Nigeria’s foreign currency controls had impacted on the Naira and dollar flows to Nigeria.
She said: “Urgent action is required to address this issue to curb the current negative impact on investment and overall economic stability. Short-term policies should focus on implementing robust monetary measures to control inflation and stabilise the currency market, enhancing foreign exchange reserves management, and supporting local industries to boost export activities.
“In the medium term, structural reforms are essential to diversify the economy away from oil dependence and promote non-oil sectors such as agriculture and manufacturing.
“Long-term policies should prioritize human capital development, technological innovation, and infrastructure enhancement to bolster productivity and competitiveness.”
Akai said tax reforms should increase tax revenues and reduce the burden on individuals and businesses, adding that the goal is to raise the tax-to-GDP ratio by 18% by 2026, which would significantly impact government revenue and economy.
Former Minister of National Planning, Dr Shamsudden Usman, who chaired the event, said the average Nigerian seems to be the victim of the fuel subsidy removal.
He said it was probably too early to assess the policy and the exchange rate depreciation.
Usman doubted the distribution of palliatives to cushion the effects of the government’s policies on the people.
He said: “Where are the palliatives? This is a valid question to ask. How well have they been implemented? Buses were promised, but where are they? The answer is no.
“But one thing the president is showing is that this is a sensitive government, and he is listening. When people complain about certain things, the government listens and takes action.”
He added: “The second thing to commend the President is that he said failure is not an option. If failure is not an option, there is need to define clearly what is failure and the consequences for failure. This is why making Key Performance Indicators (KPIs) public is very important. We must define failure and the consequences of failure.”
