New Minimum Wage: NLC Proposes Punishment for Defaulting Governors

NLC is advocating for the inclusion of punitive measures in the new minimum wage legislation to ensure compliance by state governors and local government administrators.

This proposal comes as the 37-member Tripartite Committee on Minimum Wage prepares to meet and finalize recommendations for a new wage scale in response to the economic impact of fuel subsidy removal.

The revised minimum wage aims to address the decreased purchasing power experienced by Nigerians since 2019.

The Nigeria Labour Congress (NLC) is pushing for the inclusion of punitive measures in the forthcoming minimum wage legislation for governors and local government administrators who fail to implement the new wage standards.

VerseNews reports that this development was disclosed by the National Treasurer of the NLC, Hakeem Ambali, during an interview in Abuja.

The move comes amid growing concerns over the non-compliance with the existing minimum wage laws by some state governors, a situation attributed to the absence of penalties in the current Minimum Wage Act of 2019.

Ambali highlighted the diminished purchasing power of Nigerians since 2019, exacerbated by the recent cessation of fuel subsidies, as a primary driver for revising the wage stipulations.

The proposed amendments to the minimum wage bill, which is nearing presidential approval, include stringent measures to enforce compliance, with additional provisions to increase allocations to local governments, ensuring they have the necessary funds to meet the new wage requirements.

This week, the 37-member Tripartite Committee on Minimum Wage, established by President Bola Tinubu and led by Vice-president Kashim Shettima, is set to convene to review recommendations from various regional sub-committees. These recommendations have been diverse, with proposed minimum wages ranging from N485,000 in the North-West to N850,000 in the South-South.

The committee, which consists of representatives from federal and state governments, the private sector, and organized labour, aims to finalize a new national minimum wage that will mitigate the economic impact of subsidy removal.

An executive bill will subsequently be presented to the National Assembly to amend the current legislation, reflecting the new wage structure and the associated enforcement mechanisms.