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| Left: President Bola Tinubu, Right; Kolade Alabi [ALGON] |
President Bola Tinubu is gearing up for a significant meeting with labor leaders this Thursday to discuss the long-anticipated new minimum wage. This dialogue follows persistent demands from the Association of Local Government of Nigeria (ALGON) for a revised revenue allocation formula that would empower local governments to sustain the wage increase. Labor unions are advocating for a substantial rise to N250,000, starkly contrasting the government's and private sector's suggestion of N62,000.
Local governments argue that without increased allocations, they will struggle to implement the new wage structure effectively. ALGON President, Kolade Alabi, stressed the need for a balanced approach that considers the economic realities faced by local administrations. He pointed out that while the federal government can afford such hikes, local governments operate under tighter financial constraints and need more funds to meet these obligations.
During the conclusion of the FEC meeting, the Minister of Information [Muhammed Idris Malagi] disclosed, "The government has instructed the Ministry of Budget to provide additional support for the 2024 Budget to address any discrepancies between the approved budget and the supplementary requirements." He further noted, "Last week, discussions were held with the Nigeria Labour Congress and other stakeholders to finalize a national minimum wage that accommodates the interests of all Nigerians, including the federal government, sub-national entities, and the private sector. These efforts are aimed at presenting a legislative proposal to the National Assembly."
Regarding ongoing consultations, he mentioned, "Further consultations with Organised Labour are scheduled for Thursday, following their request during recent meetings with the President. The government remains committed to resolving the minimum wage issue promptly." Addressing concerns about fiscal adjustments, he clarified, "The proposed budget amendment is essential to incorporate new fiscal developments, including provisions for the impending national minimum wage."
Additionally, on local government allocations, ALGON's National President emphasized the need for increased funding to ensure compliance with the new wage law, expressing optimism about potential reforms to benefit local councils. He urged council chairmen to leverage the autonomy granted by the Supreme Court to enhance grassroots democracy and deliver meaningful governance to their communities.
Moreover, the meeting will address the broader economic implications of the wage increase. Economists warn that an excessively high minimum wage could spur inflation, diminishing the purchasing power of the very workers it aims to help. Therefore, finding a middle ground that boosts worker welfare without destabilizing the economy is crucial.
Tags: Tinubu minimum wage, minimum wage, NLC
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