President Tinubu signs N70,000 minimum wage bill into law

He signed the bill today at the State House in Abuja, shortly after the National Assembly approved the Minimum Wage Act, 2019, which raises the National Minimum Wage from ₦30,000 to ₦70,000.

A delegation from the National Assembly, led by Senate President Godswill Akpabio and several House of Representatives members, attended this significant occasion.

In the wake of the signing, the Special Adviser to the President on Senate Matters, Basheer Lado, stated that this action fulfills a commitment.

“The signing of the minimum wage bill into law by His Excellency, President Bola Ahmed Tinubu, is both a promise fulfilled and a testament to his people-centered approach to governance,” he remarked in a statement.

“Tinubu pledged to provide a living wage for Nigerian workers during his campaign, and he has honored that commitment.”

A Long Journey to Minimum Wage

President Tinubu’s decision follows extensive discussions with labor unions, which advocated for a new minimum wage due to the rising cost of living following the removal of the fuel subsidy and the floating of the naira.

Initially, Labour unions proposed a new minimum wage of ₦494,000, while the government’s counteroffer was ₦60,000. After numerous negotiations, Labour reduced their demand to ₦250,000, and the government amended its stance to ₦62,000.

Ultimately, on July 18, a consensus of ₦70,000 was reached between the Federal Government and the unions.

“We are pleased to announce today that both organized labor and the Federal Government have agreed to raise the minimum wage from ₦62,000. The new national minimum wage to be submitted by Mr. President to the National Assembly is ₦70,000,” the Minister of Information Mohammed Idris informed State House reporters following a meeting with government and labor leaders.

A Sustainable Wage

The ₦70,000 wage rate will undergo a review every three years.

After reaching this agreement, President Tinubu quickly forwarded the bill to the National Assembly, where lawmakers passed it within a single day.

While labor demanded improved conditions for workers due to rising living costs, Tinubu, who assumed office in May last year, emphasized his administration’s commitment to maintaining sustainable wage levels.

“We must tailor our expenditures to our available resources. Prior to finalizing the minimum wage, we need to assess the overall structure,” Tinubu stated after discussions with labor leaders.

This new law comes at a time when the cost of living is rising sharply in Nigeria, with inflation hitting 34 percent in June 2024, according to the National Bureau of Statistics (NBS).