Federal Government has declared that a revamped minimum wage will be implemented from April 1, 2024, replacing the current N30,000 minimum wage set to expire at the end of March 2024. Minister of Information and National Orientation, Idris Mohammed, disclosed this information during an interview with The PUNCH in Abuja.
The announcement comes in the wake of an analysis of the 2024–2026 Fiscal Framework budgets, revealing a projected expenditure of N24.66tn on salaries over the next three years. This move follows the removal of the fuel subsidy by President Bola Tinubu on May 29, 2023, which prompted the Federal Government to provide a temporary relief measure of N35,000 to its workers.
Organized Labor, while acknowledging the temporary nature of the N35,000 wage award, insisted on a comprehensive review in 2024. The negotiation process between the Federal Government and labor unions has now officially commenced.
The Nigeria Labour Congress National President, Joe Ajaero, emphasized that the review is a statutory obligation to be conducted every five years, in accordance with the country’s labor laws.
Minister Idris Mohammed clarified that the enhanced take-home pay aims to replace the temporary palliative measure designed to alleviate the economic challenges resulting from the fuel subsidy removal. He stated, “A committee that will also involve Labor itself will work on it.
The committee is being constituted, and we are talking to Labor about it. By the time this current wage regime expires by the end of March, we will expect that a new wage will begin by April.”
The Federal Government anticipates that the new wage structure will establish a proper salary framework for workers nationwide, with expectations that the private sector and state governors will follow suit. The organized Labor, confirming the initiation of talks with the government, emphasized the importance of an inclusive national wage negotiation committee comprising all relevant parties.
As Nigeria awaits the implementation of the new minimum wage, the move is poised to have widespread implications for the country’s workforce and economic landscape, potentially paving the way for improved living standards.