How we are resolving minimum wage issue – Buhari

President Muhammadu Buhari on Wednesday assured that his
administration was committed to reviewing the wages of workers.

Buhari gave the assurance while inaugurating a technical advisory
committee for the implementation of the new national minimum wage at
the Presidential Villa, Abuja.

The president disclosed that his administration was at the verge of
transmitting a bill on improved new minimum wage to the National
Assembly.

According to Buhari: "The last time Nigeria's national minimum wage
was reviewed was in 2011. It is therefore evident that a review is
necessary, despite the prevailing fiscal challenges. This is why I
constituted the Tripartite Committee of Government, Organized Private
Sector and Labour to consider the National Minimum Wage and make
recommendations to Government for its upward review.

"That Committee has since submitted its report with some
recommendations. We are currently working on the final steps that will
lead to the submission of a National Minimum Wage Amendment Bill to
the National Assembly.

"I want to make it clear that there is no question about whether the
National Minimum Wage will be reviewed upwards. I am committed to a
review of the Minimum Wage.

"Also, it is important to explain that even though the subject of a
National Minimum Wage is in the Exclusive Legislative List, we have
been meeting with the State Governors because it is imperative that
the Federal Government carries the State Governments along in
determining any upward review of the minimum wage for workers.

"This is especially necessary considering the prevailing public sector
revenue challenges, which have made it extremely difficult for some of
the governments to pay workers as and when due.

"As you know we, at the Federal level, have made adequate provision
for the increase in the Minimum Wage in our 2019 Budget proposals
which we submitted to the National Assembly. Therefore, we will be
able to meet the additional costs that will be incurred in moving up
all personnel who are currently earning below the new minimum wage.

"However, we anticipate that after the new minimum wage has been
passed into law we will be going into negotiations for salary review
for all the workers who are already earning above the new minimum
wage. It is therefore important that we are properly prepared to meet
these demands.

"We must therefore look at ways of implementing these consequential
wage adjustments in a manner that does not have adverse effects on our
national development plans, as laid out in the Economic Recovery and
Growth Plan (ERGP). The ERGP sets appropriate targets for levels of
Capital Expenditure, Public Debt, Inflation, Employment, etc. It is
absolutely important that the implementation of a new minimum wage
does not adversely affect these targets, and thereby erode the
envisaged gains for the workers.

"It is against this background that I have set up a Technical
Committee to advise Government on how best to fund, in a sustained
manner, the additional costs that will arise from the implementation
of the consequential increases in salaries and allowances for workers
currently earning above the new minimum wage.

"The Technical Committee being inaugurated today will be chaired by an
Economist and Financial Expert, Mr. Bismarck Rewane. Other members of
the Committee are experienced economists and administrators from the
private sector working together with all the relevant officials in the
Government."

Buhari also disclosed what the inaugurated committee members are expected to do.

He added: "The Terms of Reference of the Committee are: To develop,
and advise government on how to successfully bring about a smooth
implementation of impending wage increases;

"Identify new revenue sources, as well as areas of existing
expenditure from where some savings could be made in order to fund the
wage increases without adversely impacting the nation's development
goals as set out in the Economic Recovery and Growth Plan;

"Propose a work plan and modalities for the implementation of the
salary increases;

"Any other suggestions that will assist in the implementation of this,
and future wage increases.

"Given the urgency of this exercise, the Committee is expected to
complete its deliberations and submit its report and recommendations
within one month today.

"It is now my pleasure to formally inaugurate the Technical Advisory
Committee on the Implementation of an Increase in the National Minimum
Wage."