FG Announces New Minimum Wage Effective May 1, 2024

During the May Day celebrations in Abuja, the Minister of State for Labour, Nkeiruka Onyejeocha, assured Nigerian workers that despite delays in finalizing the new national minimum wage, it will be implemented from May 1, 2024. Addressing the assembly, Onyejeocha regretted the absence of a new wage agreement but emphasized the government’s dedication to extensive consultations to finalize the adjustments promptly.

The call for a revised minimum wage has been strong among labor groups, with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) urging President Bola Tinubu’s administration to expedite the review process. Recently, Organised Labour has proposed a significant increase to N615,000 to reflect the economic realities and the high cost of living affecting the country’s workforce. This figure is a stark contrast to the current minimum wage of N30,000, which many argue is insufficient to meet the average worker’s needs amid rising inflation and living costs.

Notably, compliance with the current wage structure has been inconsistent, with several state governors failing to meet the obligations set out in the Minimum Wage Act of 2019, which mandates a review every five years. The act was last signed into law by former President Muhammadu Buhari and expired in April 2024.

Amid these discussions, President Tinubu, represented by Vice President Kashim Shettima, expressed his appreciation for the contributions of Nigerian workers to the nation’s development. In his address, he reiterated the government’s openness to the recommendations from the Tripartite Committee on National Minimum Wage and assured workers of the administration’s commitment to reforms that aim to advance Nigeria’s progress.

The establishment of a new minimum wage by May 2024 promises significant implications for labor relations and economic stability in Nigeria, as the government and labor unions work towards a resolution that acknowledges the economic pressures on workers while fostering a conducive environment for national growth.

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