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Nigeria Fed Govt Says Economic Realities, Sustainability, Public Interests To Determine New Minimum Wage

BOMA DIPRIYE 

ABUJA, Nigeria – The Federal Government has said that the outcome of the Tripartite Committee on Minimum Wage will be determined by the current economic realities, sustainability and public interests.

Secretary to the Government of the Federation, George Akume, disclosed this on Tuesday, while speaking at the 2nd National Labour Adjudication and Arbitration Forum, organised by the Nigeria Employers Consultative Association (NECA), in Abuja.

This follows the recent debates about how much Nigerian workers’ take home pay should be, with various interest groups giving their own figures ranging from N200,000 to about N1 million per month. 

Speaking on the theme, “Strengthening Tripartism and Social Dialogue (including Alternative Dispute Resolution Mechanisms) for a Sustainable Industrial Relations System in Nigeria”, Akume said the Forum will provide the government a crucial platform to “dialogue, ensure constructive engagement, and the exploration of innovative solutions” in navigating the “delicate process of determining a minimum wage that is fair, sustainable, and beneficial for all stakeholders.” 

While charging the government team to embrace tripartism and social dialogue by recognizing the need for collaboration and mutual understanding between government, employers, and labour unions, he slassured that President Bola Tinubu is passionate about rebuilding the economy, improving the welfare of workers and an assurance to all Nigerians that he would leave no stone unturned to bring succor to their hardship.

“Each party must actively listen to the concerns and perspectives of the others, fostering a spirit of compromise and cooperation.” He said 

Speaking on current economic realities, the SGF noted that while ” striving for a living wage for Nigerian workers, we must acknowledge the nation’s economic challenges. Finding a sustainable equilibrium that protects worker well-being without jeopardizing business viability and overall economic health is crucial” 

The federal government also noted that under the current circumstances, the ” traditional negotiation methods may not always yield the desired outcomes”.

He therefore, urged the government team to “embrace alternative mechanisms like mediation and arbitration”, which he said ” can expedite resolutions, minimize disruptions, and foster trust among stakeholders.

“Prioritize mutual respect and civility throughout the negotiation process, maintaining respectful discourse and acknowledging the legitimacy of diverse viewpoints is essential. This fosters a constructive environment conducive to reaching mutually beneficial agreements; and

He also listed other factors such as the need to “recognise public goods delivered by the government, factoring into consideration, wider public serving obligations discharged by the government, to cushion economic hardships, beyond the minimum wage. 

“These also include increased investment in infrastructure, such as roads, bridges, and power plants. This has helped to create jobs and boost economic activity.”

He noted that the government team also needs to factor in the need to invest resources in the “gas-powered public transportation systems, railways and waterways; and expansion and strengthening of social safety nets, such as the Conditional Cash Transfer program, which provides financial assistance to poor and vulnerable households.” 

Akume also expressed the need for adjudication and arbitration in determining the eventual outcome of the ongoing discussions on wage increase.

“They play crucial roles in ensuring fairness, transparency, and timely resolution of disputes arising from labour relations. 

“These mechanisms provide a neutral platform for settling disagreements, preventing escalations, and upholding the rights of all parties involved.

“By effectively utilising these mechanisms and drawing on the valuable lessons from this forum, we can navigate the upcoming minimum wage deliberations with wisdom, understanding, and a commitment to a sustainable industrial relations system in Nigeria.” 

In her remarks, the Minister of State, Labour and Employment, Nkiruka Onyejeocha, said the occasion provides an opportunity to exchange ideas and experiences aimed at achieving a sustainable industrial relations system for national development.

She, therefore, urged participants to approach the panel session with seriousness, recognising the importance of social dialogue and tripartism in strengthening democracy, social justice, and sustainable economic development.

“Let’s engage in open dialogue to create comprehensive solutions. I hope this forum serves as a catalyst for transformative change, leading to enhanced Labour Adjudication and Arbitration processes aligned with the principles of fairness, equity, and justice as per ILO standards.

The President of NECA, Taiwo Adeniyi, said the Forum was put together to provide a conducive environment for meaningful discussions by experts from the academia, public and private sectors to share their perspectives on the importance of dispute resolution mechanisms that uphold the rights and welfare of workers while supporting sustainable development and growth for businesses. 

“As the President of NECA, I assure you of Employers’ unwavering commitment to promoting a peaceful and harmonious industrial relations environment. We firmly believe that maintaining a healthy employer-employee relationship is vital for fostering a thriving economy and creating a stable and prosperous nation.”

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