Minimum Wage: Akpabio Says States Rich Enough to Pay

•Minister says tripartite committee report to improve workers’ condition of service

•Poorly paid workers susceptible to corruption, Abass declares

Sunday Aborisade in Abuja

President of the Senate, Senator Godswill Akpabio, yesterday, said State governors no longer have any excuse to complain about payment of a new minimum wage if signed into law going by improvements in revenues that accrue to them monthly.

Akpabio, therefore, stressed the need for all parties to the minimum wage negotiation to abide by the agreement.

This was as Minister of State for Labour and Employment, Nkeiruka Onyejeocha, said the report of a tripartite committee on the new minimum wage that had been presented to President Bola Tinubu, was a comprehensive blueprint that would drastically improve the conditions of service of all Nigerian workers both in the public and private sectors.

They both stated this in Abuja, at a one-day retreat on ‘Labour Reforms and Living Wage in Nigeria: A Legislative Intervention,’ organised by the National Institute of Legislative and Democratic Studies (NILDS).

Akpabio, who was represented by the Chairman of the Senate Committee on Labour, Employment and Productivity, Senator Diket Plang, said the significance of the retreat further underscored the possible legislative interventions in redressing the intractable and seemingly endless conversations around labour issues in the country.

He explained, “In the recent past, even some segments of the public sector, especially at state level, failed to implement the national minimum wage.

“They either failed to domesticate the legislation, or failed to honour it after domestication through the payment of percentage salaries for various reasons. Now that it is on record that all States have access to more monthly allocations as a result of the removal of fuel subsidy, it is expected that all States will abide by the new minimum wage when finally determined and legislated.”

He added, “The significance of the minimum wage debate is pertinent in a number of ways. These include shielding workers from unreasonably low compensation, preventing employers from exploiting their workers and providing workers with adequate income for food, shelter, clothing, healthcare, transportation and other essential needs, amongst many other benefits.

“There are always two sides of a coin. In others words, despite its advantages, a minimum wage also has its disadvantages.

“Some of the main concerns raised by opponents of a minimum wage include; job losses, particularly for low-skilled workers, because employers often respond to payment of higher wages by reducing their workforce.”

The Senate President noted that it had also been argued that increased minimum wage could lead to inflation, as businesses may pass on the higher labour cost to consumers in the form of higher prices for goods and services.

“It can also contribute to rising living costs amongst many other concerns. It is important to note that both the proponents and antagonists of minimum wage have their points, which seem generally valid and compelling.

“However, adding contexts to it is pertinent for obvious reasons. One, from comparative perspective, there is no one-size-fits-all approach to the question of minimum wage. There are notable variations across countries.

“While some have a unified minimum wage system determined only by the central government, there are a few countries with multiple minimum wage systems, where subnational governments can also legislate.”

Akpabio, observed that only eight per cent of the nation’s population would be affected by the minimum wage payment and the private sector workers would be worst hit when implemented.

He said, “Nigeria’s labour market has two segments, namely the public and private sectors. However, the public sector workers are the most affected by increases in the minimum wage for two main reasons.

“Firstly, it is not proper for the government to violate its own law. Secondly, nearly all public-sector workers are unionised. Violations can therefore be resisted and counterproductive.

“Majority of Nigerians are not directly affected by changes in the minimum wage mainly because 92.3 per cent of the working age population that are employed work in the informal sector, mostly as farmers, traders, artisans or providers of services.

“Conversely, only about eight per cent of Nigerians would benefit from a minimum wage increase, all other things being equal. Unfortunately, “all other things” have not always been equal.

“Some components of this eight per cent who work in the private sectors, especially in services, hospitality, small private clinics and non-profit organisations earn below the minimum wage.

“This is partly because many of them are not sufficiently organised and unionised. As such, they lack a veritable platform for effective organisation and resistance.

“For instance, how will the new minimum wage, even if eventually resolved, affect majority of Nigerian not directed covered by it? How will the informal sector respond to it? In what ways could it impact employment, income and inequality across board and beyond the labour force? These are relevant posers that we cannot completely ignore.

“My reference to the above challenges is not to denigrate the ongoing demand by labour for a new minimum wage, but to serve as a reminder of the complexity of the issues in Nigeria.”

For her part, Onyejeocha in her speech said the retreat underscored, “our collective commitment to the welfare of every Nigerian worker, a commitment that is both a moral imperative and a strategic priority for our nation’s growth and development.”

She noted that the vision of the current administration was to create a labour market that is fair, equitable and capable of sustaining the aspirations of every Nigerian worker.

Onyejeocha said, “Central to our efforts is the work of the tripartite committee comprising government, the organised private sector and organised labour, which has diligently engaged with stakeholders on the critical issue of a new national minimum wage.

“The Committee’s comprehensive submissions to Mr. President, reflects a balanced and realistic approach to addressing the myriad challenges faced by our workforce.

“These submissions are not just recommendations; they are a blueprint for actionable reforms that will drive sustainable improvements in labour conditions across the country.”

She explained that one of the key initiatives of the Federal Ministry of Labour and Employment was the Labour and Employment Empowerment Programme (LEEP).

 LEEP, according to her, “embodies our holistic approach to labour reform, with  specific pillar dedicated to labour reforms and labour compliance enhancement.”

She added, “This initiative aims to ensure that employers adhere strictly to the highest standards of occupational health and safety.

“By fostering a culture of compliance, we are not only protecting workers but also promoting a business environment that is conducive to productivity and growth.

“As we embark on these reforms, we are particularly focused on factories and industrial parks.

“These areas are critical to our industrial strategy and the well-being of thousands of workers. Our plan is to rigorously enforce safety standards and ensure that employers provide safe and healthy working conditions.

“This is not just about compliance; it is about creating workplaces where workers can thrive without fear of injury or exploitation.”

She noted that the legislative oversight of the National Assembly Committees on Employment, Labour and Productivity would support her ministry’s vision for a just and equitable labour market.

“Let us indeed create laws and policies that not only foster productivity and growth amongst our workforce, but also comeasurably punish offenders and violators of labour laws. This is the only pathway to true reform,” she added.

Speaker of the House of Representatives, Rt. Hon. Tajudeen Abass, noted that labour represents a critical component and stakeholder in Nigeria’s national development architecture that deserves the best treatment in the true sense of the term.

Abass, who was represented by the Chairman, House Committee on Labour and Productivity, Adegboyega Adefarati, identified poor remuneration as one of the main causes of corruption in the country.

“Poorly paid workers are highly susceptible to corrupt inducements and pressures,” he said.

He pledged that the 10th National Assembly had firmly resolved to see to the expeditious resolution of the new minimum wage matter as soon as possible.

Abass said, “We will do our best to give it (minimum wage bill), expeditious hearing and passage whenever we receive the proposal from the executive.”

The retreat, according to the Director General of NILDS, Professor Abubakar Sulaiman, was organised for the chairmen and members of the National Assembly committees on employment, labour and productivity in both  the Senate and the House of Representatives.

Sulaiman also said stakeholders drawn from the Nigeria Labour Congress (NLC);  the Trade Union Congress (TUC); the Nigerian Employers’ Consultative Association (NECA), and the International Labour Organisation (ILO) were part of the event.