How N18,000 minimum wage was agreed upon

John Ofikhenua, Abuja and Jide Orintunsin, Minna, july 05, 2011, the nation 

The report of how N18,000 was agreed upon as the minimum wage between government representatives and the labour movement emerged yesterday.

The amount, it was gathered, was what state governments proposed during negotiations.

Also yesterday, the Academic Staff Union of Nigeria Universities (ASUU) backed the two-week ultimatum given the government by labour to pay the minimum wage or face a strike.

According to a report on the Tripartite Committee on National Minimum Wage, which our correspondent obtained from the Nigerian Labour Congress (NLC) Headquarters in Abuja, Abia State proposed to pay N46,700, Kebbi proposed N30,000, Imo proposed N30,000 and Kwara N30,000. Bauchi proposed N16,585.50, the Federal Capital Territory N25,000, Zamfara N15,000, Jigawa N20,800, Plateau N10,000, Anambra N25,000 and Ebonyi proposed N10,000. Akwa Ibom proposed N13,333.12 and Kano N11,022.17. The average of the various proposals by representatives of state governments, came to N21,800. N18,000 was adopted as the uniform monthly minimum wage for workers across the country.

The document was jointly signed by representatives of the Minister of Labour and Productivity Ministry, Chief Emeka Wogu; the former Minister of State for Finance, Mr. Remi Babalola; Nigerian Labour Congress President Abdulwahed Omar, President of Trade Union Congress, Peter Esele and representatives of the states and other stakeholders.

Wogu said yesterday that in a country where true federalism is practised, it would have been improper to dialogue with the state governors on the minimum wage.

He spoke during a visit to the NLC President in his office in Abuja.

Wogu however said since the minimum wage issue could trigger a national crisis, he could intervene.

“The issue of talking to the governors or intervening, the President of NLC alluded to the fact that we will discuss issues but he would appreciate if I can intervene.  But usually in my own thinking, it wouldn’t have been proper for me to intervene if federalism is practiced in its true form.

“But because we have a crisis in our hands, it is a national crisis that is looming; I think if it gets to my point of intervening at that level, I am fit to intervene. But we are just beginning to look at the issues and I think I will be more proactive now.”

The minister said it would take a mutual dialogue to resolve the labour crisis by coming to deliberate on it with sincerity instead of “them versus us.”

Omar said the Federal Government ought to have implemented the national minimum wage to set example for the states but it has not shown the example.

Rising from its National Executive Council (NEC) meeting at Federal University of Technology (FUT) Minna, ASUU urged “all Nigerians to say ‘No’ to this betrayal by participating massively in mass actions that may be called by the labour and patriotic organisations to fight the betrayal.”

ASUU National President Prof. Ukachukwu Awuzie, said the union was in full support of the ultimatum given federal government by NLC and TUC, adding that the union would mobilise its members across the country to support the strike.

ASUU observed with sadness that the situation in the country was worsening. The union is also worried by what Awuzie called over bearing influence of international financial institutions, such as the International Monetary Fund (IMF) and the World Bank on the country’s economy.

ASUU said the policies of the two international bodies “do nothing but destroy the economies and societies of the third world countries”. The union lamented that rather than waking up to this reality, the federal government seems intent on continuing with the liberalisation of the economy and privatisation of the economy in line with the World Trade Organisation (WTO) demands.  

The ASUU President berated the Nigeria Governors’ Forum for calling for the removal of subsidy on oil products. According to the union, the governors’ position is “wicked, insensitive and a ploy to avoid assuming responsibilities on behalf of the Nigerian people.”

The union also took a hard look at the federal government’s upward review of electricity tariff from N8:50 per unit to N10:00. Decrying the development, ASUU said, “this quantum increase is most insensitive and callous”, alleging that the increase is to prepare the ground for the privatisation of the power sector.

According to Awuzie, “The huge amount being squandered on failed private sector enterprises should be used in building public sector enterprises and providing for a leadership role for government in the development process. We want to insist that government and not the private sector should lead the development effort in Nigeria.”