The Federal Government (FG) has agreed to send a Minimum Wage (Amendment) Bill to the National Assembly. From an agreement reached between the Government and the Nigeria Labour Congress, a Bill stipulating the National Minimum Wage will be sent to the National Assembly on 23rd January 2019. Although the Federal Government had agreed to transmit the report and the Bill on the new Minimum Wage since November, 2018, it appears its earlier plans were scuttled after States decried their inability to pay the proposed N30,000 minimum wage.
If transmitted as scheduled, labour groups expect the National Assembly to prioritise deliberation on the Bill when it resumes from recess on 16th January, 2019. In the meantime, the President has constituted a Technical Advisory Committee chaired by Bismarck Rewane, an economist, to ensure the rise in wages has no adverse effect on national development plans. Among others, the Committee will advise Government on how best to implement wage increases and fund additional costs that arise from consequential increases in salaries and allowances for other government workers currently earning above the new minimum wage.
While the President has stated that adequate provision for the increase has been included in the 2019 budget proposal that was submitted to the National Assembly in December, 2018, it is unclear how States who have asked for bailout funds to pay the N18,000 current minimum wage in the past intend to meet this requirement. Yet, many Nigerians agree that an increase in Minimum Wage (which was last increased in 2011) is a step in the right direction and will cushion the effect of rising costs.
The Committee has been mandated to submit its report by February 2019.