Why did the FG keep the N60,000 minimum wage? EXPLAINER

 

On Friday, May 31, the Federal Government and Organized Labor were unable to come to a consensus about a new national minimum wage.
The labor union reduced its proposal by reducing N3, 000 out of the N497, 000 it had recommended last week, while the government increased its first offer of N57, 000 to N60, 000.


Since the committee was established in January of this year, the tripartite members have been unable to reach an agreement on a new minimum wage.
On May Day, the NLC and TUC gave the committee until the end of the month to complete negotiations on a new national minimum wage in order to expedite the negotiation process.
The deadline for that order ended on Without a deal, Friday night.

The administration maintained its N60,000.00 monthly offer during the conference.

FG provided the following 14 justifications for an N60,000 minimum wage:



1.    N35,000 pay award for all Federal employees who are paid by the Treasury.
2.    N100 billion would be used to buy CNG conversion kits and buses that run on the fuel.

3.    Financial inclusion and a conditional grant of N125 billion to MSMEs.
4.    15 million households will get N25,000 each over the course of three months.
5.    Palliatives: N185 billion in loans to the States to mitigate the impact of the elimination of gasoline     subsidies.
6.    N200 billion to help cultivate hectares of land in order to increase food production.
7.    N75 billion would be used to boost the manufacturing industry.
8.    Student loans for postsecondary education total N1 trillion.
9.    42,000 metric tons of grain were released from strategic stocks.
10.    Acquire and 60,000 metric tons of rice were distributed further by the rice millers organization.
11.    Recent increases in pay for federal employees have ranged from 25 to 35 percent across all         consolidated wage systems.
13.    90% health expense reimbursement for Federal Civil Servants who are enrolled in the NHIS.
14.    Abuja's light rail system was put into service to reduce transportation costs through the end of the     year. Lagos State had previously started the Blue and Red lines initiative.
    Apart from the liberty of Federal Government employees to work in agriculture, ICT services have         been authorized as additional revenue streams.