President Bola Tinubu has assured organized labor that an executive bill on the new national minimum wage for workers will soon be sent to the National Assembly for passage. This announcement came during his Democracy Day speech on June 12, 2024.

“In this spirit, we have negotiated in good faith and with open arms with organized labor on a new national minimum wage. We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,” Tinubu said.

He noted that despite the labor strike on June 3, 2024, no leaders from the Nigeria Labour Congress (NLC) or the Trade Union Congress (TUC) were arrested or threatened. “Instead, the labor leadership was invited to break bread and negotiate toward a good-faith resolution,” he stated, adding that “reasoned discussion and principled compromise are hallmarks of democracy.”

Tinubu also acknowledged the economic difficulties facing the nation and empathized with Nigerians. He assured that the necessary repairs to fix the economy are underway. “The reforms we have initiated are intended to create a stronger, better foundation for future growth. There is no doubt the reforms have occasioned hardship. Yet, they are necessary repairs required to fix the economy over the long run so that everyone has access to economic opportunity, fair pay, and compensation for their efforts and labor,” he said.

Negotiations for a new minimum wage have been ongoing for some time. The Minimum Wage Act of 2019, which set ₦30,000 as the minimum wage, expired in April 2024. The Act is reviewed every five years to reflect current economic demands. In January, President Tinubu established a Tripartite Committee to negotiate a new minimum wage, comprising representatives from organized labor, federal and state governments, and the organized private sector.

However, the committee failed to reach an agreement on a new wage, prompting labor to declare an indefinite strike on June 3, 2024. The strike led to a shutdown of airports, hospitals, the national grid, banks, and legislative complexes. Labor unions argued that the current minimum wage of ₦30,000 is insufficient given the current inflationary pressures and the effects of recent government policies, including the removal of petrol subsidies and the unification of forex windows.

The strike was suspended on June 4, 2024, after President Tinubu assured a wage increase above ₦60,000. Subsequently, labor and government representatives resumed talks. On June 7, 2024, despite labor reducing its demand from ₦494,000 to ₦250,000, and the government increasing its offer to ₦62,000, an agreement was not reached.

Both parties have submitted their reports to the President, who is expected to decide and send an executive bill to the National Assembly to establish a new minimum wage law.