Federal Government Agrees on N62,000 National Minimum Wage with Private Sector Support Amid Labour Union Disagreement

The Nigeria Government has reached an agreement with the Organised Private Sector, setting the new national minimum wage at N62,000 monthly. This decision comes as a compromise amidst disagreements from labour unions, including the Nigeria Labour Congress and the Trade Union Congress.

President Bola Tinubu had set the stage for discussions on the minimum wage when he announced the removal of fuel subsidy during his inauguration in May, 2023. This move sparked unrest in the country, leading to increased prices and inflation.

Since the President’s announcement, labour unions have been advocating for a higher minimum wage, insisting on N250,000 per month, while the government initially proposed an increase to N48,000 from the current N30,000.

In response, the Nigeria Governors Forum expressed concerns about the sustainability of the proposed N60,000 minimum wage, citing potential financial strain on state coffers, which would leave little for developmental projects.

Following extensive deliberations, the Tripartite Committee on the National Minimum Wage, composed of representatives from the government, private sector, and labour unions, came to a consensus on the N62,000 wage, factoring in various economic, social, and political considerations as well as international labour standards.