Why New Minimum Wage Isn’t Implemented Yet – Tinubu

December 18, 2023 Stan

President Bola Ahmed Tinubu, on Sunday, disclosed that the payment of the new minimum wage is being hampered by some factors.

Tinubu, who made the disclosure on Sunday in an interview with The Nation, said the new minimum wage in Nigeria must be realistic and sustainable.

According to him, States of the Federation do not have equal financial standing as some are richer than others, hence the need to come up with a workable solution to make the new minimum wage feasible.

He noted that the new minimum wage could not be implemented and sustained if some States are still finding difficulty in the payment of the old minimum wage.

Tinubu, however, said the Federal Government is committed to the provisional increase in the federal minimum wage to N35,000 per month for a six-month period, adding that two months have been paid to workers already.

He also said dialogue with organised Labour had not stopped as such engagement was important to achieving a fair and reasonable minimum wage.

“I understand the concerns regarding the unveiling of the new minimum wage and how states will manage these changes, especially those with fewer resources.

“To address this, my administration has approved a provisional increase in the federal minimum wage to N35,000 per month for a six-month period, two months of which have already been paid. This decision follows extensive consultations with the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

“In managing the situation with the states, we are working closely with them to ensure the new wage structure is practical and sustainable. It’s important that each state’s unique financial situation is considered.

“We are focused on strategies to help states strengthen their economies, considering factors like tax efficiency and economic diversification.

“We are committed to ongoing dialogues with labour unions and state governments. This collaborative approach is crucial to ensure that the new minimum wage is fair, reasonable, and implementable across all states. Our goal is to balance the economic well-being of our workers with the overall financial health of the nation.

“We ask Nigerians to rest assured that my administration will not rest until we have delivered a sustainable solution in the best interest of Nigerians,” President Tinubu said.