Senator Orji Uzor Kalu has proposed a new minimum wage of 90,000 naira for Nigerian workers to resolve the ongoing minimum wage dispute between the Federal government and organized labor.
During a Senate plenary session on Tuesday, Kalu addressed the issue amid the suspension of a nationwide strike by the Nigerian Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC), who were demanding a higher minimum wage than the current 30,000 naira.
Kalu highlighted the risks associated with the industrial action and urged the Senate to engage separately with the Federal government and the labor unions to agree on the proposed 90,000 naira minimum wage. He noted that this amount represents a 40% increase from the current wage.
Following a motion by Senator Diket Plang, Chairman of the Senate Committee on Labour and Employment, Kalu called on the Senate to mediate between the two parties to reach an agreement. He further explained that a 90,000 naira minimum wage equates to a 200% increase over five years, averaging an annual increase of 40%.
Considering food inflation and purchasing power parity, Kalu argued that labor should be satisfied with this proposal.
As the Senate was about to discuss Plang’s motion to call off the strike, news broke that the labor unions had already suspended their industrial action. Consequently, the motion’s prayers were put on hold.
Kalu emphasized the need for an immediate resolution, warning that the complete shutdown of Nigeria’s power grid by the unions was a “daring move” that could take four days to restore. He suggested that the Senate should negotiate a minimum wage between 75,000 and 90,000 naira.
Senator Ali Ndume proposed that the Senate, in collaboration with the executive, sponsor a Bill to ensure the new minimum wage is implemented. He stressed that the Senate should oversee the entire negotiation process to prevent future disputes.
Senator Ahmad Lawan expressed concerns about the devaluation of the naira, arguing that a new minimum wage would be ineffective if the naira continues to depreciate.
He stressed the importance of strengthening the naira to benefit all Nigerians, employed and unemployed.
Senate President Godswill Akpabio criticized some labor unionists for their actions during the strike, particularly the shutdown of the National Grid, which he labeled as economic sabotage.
He also condemned the disruption of students’ West African School Certificate Examinations. Akpabio assured that future laws would address these excesses.
Akpabio thanked the NLC and TUC for suspending the strike, allowing negotiations to proceed.
He affirmed the Senate’s commitment to contributing to the discussions and awaited the incoming Minimum Wage Bill from the executive to enact it for the benefit of all Nigerians.
