FG and NLC Disagree Over When Talks on a New Minimum Wage Should Start

The Federal Government and the Nigeria Labour Congress (NLC) are at odds over the timetable for negotiating a new national minimum wage. The disagreement surfaced after an exchange of letters between the Minister of Labour and Employment, Dr Muhammad Dingyadi, and NLC President Joe Ajaero over when the review of the current N70,000 minimum wage should begin.

The present wage floor was signed into law in July 2024. The legislation provides for periodic reviews, and the two sides interpret the timing of the next review differently. Labour is pressing for preparations, including the setting up of a tripartite committee, to commence right away, arguing that rising living costs have eroded the value of the 2024 figure.

Why the timing matters

Minimum wage negotiations in Nigeria typically take months. A tripartite committee made up of government, employers and labour representatives must be formed, states and private-sector employers consulted, and proposals debated before a bill goes to the National Assembly. Labour leaders say starting late risks leaving workers waiting long after the review date. Government officials, for their part, have pointed to the statutory timeline and to the fiscal pressures facing federal and state budgets.

Key points

• Current wage: N70,000, signed into law in July 2024.
• Dispute: the start date for review negotiations.
• Labour’s position: preparations should begin immediately.
• Process: a tripartite committee must be constituted before talks proceed.

Inflation in the background

The disagreement comes in the same week that official data showed headline inflation slowing to 14.63 per cent in September. Labour points out that slower inflation still means prices are rising, and that food inflation remains close to 20 per cent. Employers’ groups have urged that any new figure take account of what small businesses can afford.

Neither side has announced a date for formal talks. Further correspondence and meetings between the ministry and labour centres are expected in the coming weeks.

Photo: Unsplash (illustrative).