President Bola Tinubu has officially signed the minimum wage bill into law, concluding extensive deliberations between government officials, labour unions, and the private sector.
The signing ceremony took place at the State House in Abuja on Monday, shortly after the National Assembly passed the Minimum Wage Act, 2019, which raises the National Minimum Wage from ₦30,000 to ₦70,000.
The event was witnessed by a delegation from the National Assembly, led by the President of the Senate, Godswill Akpabio, along with several members of the House of Representatives.
Basheer Lado, the Special Adviser to the President on Senate Matters, remarked that the signing fulfills a campaign promise and reflects President Tinubu’s commitment to a governance model focused on the well-being of the people.
“The signing of the minimum wage bill into law by His Excellency, President Bola Ahmed Tinubu is both a promise kept and a demonstration of his people-centric governance model,” Lado stated.
“Tinubu promised to pay a living wage to Nigerian workers during his electioneering campaigns and he has kept that promise.”
This development follows prolonged negotiations with labour unions, who demanded a new minimum wage in response to the removal of the fuel subsidy and the floating of the naira, which significantly increased the cost of living.
Initially, the labour unions proposed a minimum wage of ₦494,000, while the government offered ₦60,000. After several rounds of negotiations, the unions revised their demand to ₦250,000, and the government raised its offer to ₦62,000.
On July 18, the Federal Government and labour unions reached an agreement on a new minimum wage of ₦70,000. Minister of Information Mohammed Idris announced the consensus, stating, “We are happy to announce today (Thursday) that both the organised labour and the Federal Government have agreed on an increase on the ₦62,000 minimum wage.
The new national minimum that Mr. President is expected to submit to the National Assembly is ₦70,000.”
The new minimum wage will be reviewed every three years. Following the agreement, President Tinubu promptly sent the bill to the National Assembly, which passed it in a single day.
Despite labour unions’ demands for a higher wage to counter the rising cost of living, President Tinubu maintained that the government could only commit to a sustainable amount.
“You have to cut your coat according to the available cloth. Before we can finalise the minimum wage process, we have to look at the structure,” Tinubu stated after a meeting with labour leaders.
The new minimum wage law comes at a time when Nigeria’s inflation rate has soared to 34 percent as of June 2024, according to the National Bureau of Statistics (NBS).
