CEM REPORT, WAGES | The Federal Government has said it will review the salaries of workers to meet the current realities in the economy of the country.
The federal government disclosed this through the Minister of Labour and Employment, Chris Ngige, at the public presentation of the NLC at 40 publication.
Chris Ngige cited inflation which is at double figures and still rising and the weakened purchasing power of Nigerians as the bases for the proposed adjustment in the minimum wage from what it currently is.
“Yes the inflation has increased worldwide and it is not confined to Nigeria, that is why in many jurisdictions, it is an adjustment of wages right now.
“We as the Nigerian government, we shall adjust in confirmative with what is happening in wages.”
At the publication titled, “Contemporary History of Working Class Struggles” on Monday in Abuja the Minister noted that the Federal Government was very much aware that the N30,000 National Minimum Wage had depreciated.
He added that the 2019 National Minimum Wage Act, right now has a clause for the review, which we started then, I do not know whether it is due next year or 2024.
“But before then, the adjustment of wages will reflect what is happening in the economy, just as government has started the adjustment with the Academic Staff Union of Universities (ASUU), ‘’he said.
He seized the stage to explain that the Federal Government did not take ASUU to court over the prolonged strike of the union as some people claimed.
He noted that ASUU was at the stage of Collective Bargaining (CBA) negotiation with their employers, the Federal Ministry of Education when they embarked on strike.
On the 40 years of NLC, Ngige said: “A fool at 40 is a fool forever. A wise man at 40 is a wise man forever. NLC is a wise man forever.”
Recall that the Minister of Finance and Budget Zainab Ahmed, submitted a proposed budget over about N11 trillion for 2023 bearing a deficit of about N9 trillion.
The country currently spends over 80% of its revenue on debt servicing.
While the federal government’s move to increase salaries comes on a good foot the implication might bite back on the economy as the government might need to borrow more to pay salaries.