President Muhammadu Buhari on
Wednesday assured that his administration was committed to reviewing the wages
of workers.
Buhari gave the assurance while
inaugurating a technical advisory committee for the implementation of the new
national minimum wage at the Presidential Villa, Abuja.
The president disclosed that his
administration was at the verge of transmitting a bill on improved new minimum
wage to the National Assembly.
According to Buhari: “The last
time Nigeria’s national minimum wage was reviewed was in 2011. It is therefore
evident that a review is necessary, despite the prevailing fiscal challenges.
This is why I constituted the Tripartite Committee of Government, Organized
Private Sector and Labour to consider the National Minimum Wage and make
recommendations to Government for its upward review.
“That Committee has since
submitted its report with some recommendations. We are currently working on the
final steps that will lead to the submission of a National Minimum Wage
Amendment Bill to the National Assembly.
“I want to make it clear that
there is no question about whether the National Minimum Wage will be reviewed
upwards. I am committed to a review of the Minimum Wage.
“Also, it is important to explain
that even though the subject of a National Minimum Wage is in the Exclusive
Legislative List, we have been meeting with the State Governors because it is
imperative that the Federal Government carries the State Governments along in
determining any upward review of the minimum wage for workers.
“This is especially necessary
considering the prevailing public sector revenue challenges, which have made it
extremely difficult for some of the governments to pay workers as and when due.
“As you know we, at the Federal
level, have made adequate provision for the increase in the Minimum Wage in our
2019 Budget proposals which we submitted to the National Assembly. Therefore,
we will be able to meet the additional costs that will be incurred in moving up
all personnel who are currently earning below the new minimum wage.
“However, we anticipate that
after the new minimum wage has been passed into law we will be going into
negotiations for salary review for all the workers who are already earning
above the new minimum wage. It is therefore important that we are properly
prepared to meet these demands.
“We must therefore look at ways
of implementing these consequential wage adjustments in a manner that does not
have adverse effects on our national development plans, as laid out in the
Economic Recovery and Growth Plan (ERGP). The ERGP sets appropriate targets for
levels of Capital Expenditure, Public Debt, Inflation, Employment, etc. It is
absolutely important that the implementation of a new minimum wage does not
adversely affect these targets, and thereby erode the envisaged gains for the
workers.
“It is against this background
that I have set up a Technical Committee to advise Government on how best to
fund, in a sustained manner, the additional costs that will arise from the
implementation of the consequential increases in salaries and allowances for
workers currently earning above the new minimum wage.
“The Technical Committee being
inaugurated today will be chaired by an Economist and Financial Expert, Mr.
Bismarck Rewane. Other members of the Committee are experienced economists and
administrators from the private sector working together with all the relevant
officials in the Government.”
Buhari also disclosed what the
inaugurated committee members are expected to do.
He added: “The Terms of Reference
of the Committee are: To develop, and advise government on how to successfully
bring about a smooth implementation of impending wage increases;
“Identify new revenue sources, as
well as areas of existing expenditure from where some savings could be made in
order to fund the wage increases without adversely impacting the nation’s
development goals as set out in the Economic Recovery and Growth Plan;
“Propose a work plan and
modalities for the implementation of the salary increases;
“Any other suggestions that will
assist in the implementation of this, and future wage increases.
“Given the urgency of this
exercise, the Committee is expected to complete its deliberations and submit
its report and recommendations within one month today.
“It is now my pleasure to
formally inaugurate the Technical Advisory Committee on the Implementation of
an Increase in the National Minimum Wage.”
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