The president of Nigeria Labour Congress (NLC), Joe Ajaero, has disclosed that President Bola Ahmed Tinubu gave an ultimatum to either accept N62,000 or get 250,000 minimum wage with fuel price hike.
Ajaero said this while speaking in an interview with ARISE NEWS on Friday night about the new minimum wage of N70,000.
Explaining the journey to the N70,000 minimum wage, Ajaero said, “It is the tripartite committee which comprises of the organised private sector, government, and labour committee that negotiates minimum wage. After negotiation, they came to N62,000, then it was labour that said no and submitted their report to the president awaiting transmission to the National Assembly and then another round of talks.
“Last week Thursday, the president met with us and gave me many analyses. Even while we were negotiating at N60,000, the governors insisted on not paying, that it would be difficult, but we continued moving.
“The president gave us two options, ‘I can pay you N250,000 if you allow me to increase the pump price of petroleum, and he said, Ajaero, on my first day I said subsidy is gone, and since that time you have refused to allow me to increase more, so where will I get the money to pay you minimum wage? If you allow me, I pay you N250,000. If not, take N62,000. I’m giving you one hour to talk. Let me stay in my office so we can conclude this meeting.’”
The labour representatives, however, decided not to make a hasty decision. Ajaero recounted, “We said no, we aren’t meeting here. We adjourn for one week. We went back and looked at the larger implications of collecting N250,000 and another increase in the pump price of petroleum products. We went back to say, Mr. President, these are two issues, we are here for minimum wage. We are not able to discuss the issue of pump price or attaching it as a condition to increase it more. That would be too selfish of the labour movement. It was there we opened the discussion and got to 70,000.”
Expressing his disbelief at the reactions and criticism of Nigerians about the new minimum wage, he said “N70,000 clearly is an increase of 133% of the old rate, and if you look at it, we moved further to break a jinx of negotiating every five years. We were pushing for two years, and Mr. President said we should leave it at three years. What this means is that even before the next election, we are going to negotiate again and get another wage reviewed.”
Addressing the concerns of the sub-national entities, Ajaero mentioned, “The president said the sub-nationals will work with the governors on this issue of minimum wage and that the private sector will address the issues that will enable them to pay. As at the time we reached N62,000, two of their representatives were there, the governor of Kwara state and Imo state, and I called their attention that you are here meeting with us, and your colleagues are saying they won’t pay. That undermines the essence of your representation, and they said it is not an issue, they will talk to their colleagues.”
He also highlighted the willingness of some governors to comply, “Before that day, the governor of Edo state said he will be paying N70,000 effective May 1. The governor of Lagos said he is already paying N70,000. The governor of Kebbi, Uyo said they will pay. Two days ago, the governors from PDP came out to say, these people need an improved wage, although they said they will have to consider the ability to pay.”
Ajaero further addressed the issue of the ability of states to pay the new minimum wage, dismissing claims of financial incapacity. “None of them can now say they don’t have the ability to pay because between the time there was an increase in the pump price of petroleum products, they have been receiving almost 200% additional revenue and nothing has changed in terms of wages.
“ It is a matter of priority. Those who prioritise their governance very well will pay; those that will not pay will definitely not pay even if you give them all the money. Former President Buhari released money from Paris funds to the states for them to pay salaries, and some didn’t pay it,” he added.
He emphasised the commitment to ensuring the proper implementation of the new minimum wage, “Our focus now is to make sure that this new minimum wage is properly implemented, and I think this is just the first stage.”
He expressed confidence in the private sector’s ability to adapt, “I think the private sector will be in a better position to cope with the realities of the moment.”
Nancy Mbamalu
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