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See 14 Reasons Federal Government Proposes N60,000 Minimum Wage

Published by admin on June 2nd, 2024.

See 14 Reasons Federal Government Proposes N60,000 Minimum Wage

On May 31, the Federal Government and labor unions, including the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), were unable to finalize an agreement on a new national minimum wage. The tripartite committee, established in January, has been in negotiations to determine an appropriate minimum wage.

Despite the NLC and TUC setting a deadline for the end of May to conclude these discussions, the deadline passed without resolution. Consequently, both unions have called for a nationwide strike, criticizing the government’s lack of commitment to resolving the issue and reversing recent increases in electricity tariffs.

NLC President Joe Ajaero and TUC President Festus Osifo have expressed their frustration, accusing the government of not taking the negotiations seriously, leaving them no choice but to proceed with industrial action.

Why the Federal Government Supports a N60,000 Minimum Wage

As reported by The Nation, the Federal Government has outlined several reasons for advocating a N60,000 minimum wage:

1. Wage Increase: A N35,000 wage increment for all federal employees paid from the treasury.

2. CNG Initiatives: Allocation of N100 billion for the purchase of CNG-fueled buses and CNG conversion kits.

3. MSME Support: Provision of N125 billion in conditional grants and financial inclusion measures for micro, small, and medium enterprises (MSMEs).

4. Household Support: Distribution of N25,000 to 15 million households for three months.

5. Palliatives for States: Allocation of N185 billion in loans to states to mitigate the effects of fuel subsidy removal.

6. Agricultural Boost: Investment of N200 billion to enhance food production through the cultivation of additional land.

7. Manufacturing Sector: Allocation of N75 billion to strengthen the manufacturing sector.

8. Student Loans: Provision of N1 trillion for student loans to support higher education.

9. Food Security: Release of 42,000 metric tons of grains from strategic reserves.

10. Rice Distribution: Purchase and distribution of 60,000 metric tons of rice from the Rice Millers Association.

11. Salary Increase: Recent salary increases ranging from 25-35% for federal workers on consolidated salary structures.

12. Healthcare Subsidy: A 90% subsidy on health costs for Federal Civil Servants registered with the NHIS.

13. Transportation: Commissioning of a light rail system in Abuja to reduce transportation costs, with a similar initiative underway in Lagos with the Blue and Red lines.

14. Alternate Income Opportunities: Approval for federal civil servants to engage in agriculture and ICT services as alternate sources of income.

These measures reflect the government’s commitment to improving the livelihoods of its workers and addressing the economic chal

lenges faced by the nation.