President Tinubu Signs N70,000 Minimum Wage Bill Into Law
President Bola Tinubu has signed the minimum wage bill into law, concluding extensive negotiations among government authorities, labor unions, and the private sector.
The bill was signed at the State House in Abuja on Monday, shortly after the National Assembly passed the Minimum Wage Act, 2019, which increases the National Minimum Wage from ₦30,000 to ₦70,000.
A National Assembly delegation led by Senate President Godswill Akpabio, along with some House of Representatives members, witnessed the landmark event.
Following the signing, Basheer Lado, the President’s Special Adviser on Senate Matters, emphasized that this action fulfills a campaign promise.
“The signing of the minimum wage bill into law by His Excellency, President Bola Ahmed Tinubu, is both a promise kept and a demonstration of his people-centric governance model,” Lado stated. “Tinubu promised to pay a living wage to Nigerian workers during his electioneering campaigns, and he has kept that promise.”
The Path to a New Minimum Wage
President Tinubu’s decision followed prolonged discussions with labor unions, which demanded a new minimum wage in light of the removal of fuel subsidies and the floating of the naira, both of which significantly increased the cost of living.
Labor unions initially proposed ₦494,000 as the new minimum wage, while the government offered ₦60,000. After several rounds of negotiations, the unions lowered their demand to ₦250,000, and the government raised its offer to ₦62,000.
On July 18, the Federal Government and the unions finally agreed on a new minimum wage of ₦70,000.
“We are happy to announce today (Thursday) that both the organized labor and the Federal Government have agreed on an increase from the ₦62,000 minimum wage. The new national minimum wage that Mr. President is expected to submit to the National Assembly is ₦70,000,” the statement read.
Sustainable Wage
The ₦70,000 minimum wage will be reviewed every three years. Following the agreement, President Tinubu swiftly transmitted the bill to the National Assembly, which passed it in one day.
While labor unions insisted on better conditions for workers due to the rising cost of living, Tinubu, who assumed office in May last year, stressed the importance of a sustainable wage.
“You have to cut your coat according to the available cloth. Before we can finalize the minimum wage process, we have to look at the structure,” Tinubu stated after meeting with labor leaders.
The new law comes at a time when Nigeria is facing escalating living costs, with the country’s inflation rate reaching 34 percent in June 2024, according to the National Bureau of Statistics (NBS).
