President Muhammadu Buhari has made it clear that his government is committed to the implementation of new minimum wage even as it is determined to negotiate salary review for all the workers who are already earning above the new minimum wage.
“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.
The President, who spoke today at the inauguration of Presidential Technical Committee on the implementation of the proposed minimum wage stressed that he is committed to a review of the Minimum Wage.
He however said that all the stakeholders must look at ways of implementing what he called “these consequential wage adjustments” in a manner that does not have adverse effects on the 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.”
President Buhari said that it is against this background that he 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.”
The President gave the terms of reference of the Committee as developing, and advising government on how to successfully bring about a smooth implementation of impending wage increases, identifying 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.
It is also includes proposing a work plan and modalities for the implementation of the salary increases and any other suggestions that will assist in the implementation of the new and future wage increases.
He said that given the urgency of this exercise, the Committee is expected to complete its deliberations and submit its report and recommendations within one month from today, Wednesday, January 9.
